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LABOR STANDARDS
Labor Code of the Philippines Annotated by Ungos COMMENT:
1. Reason for Affording Protection to Labor
8 Protection to labor is intended to raise the worker to equal
PRELIMINARY TITLE footing with the employer and shield him from abuses brought
CHAPTER 1 about by the necessity for survival.
GENERAL PROVISIONS 8 Sanchez vs. Harry Lyons employer stands on higher footing
than the employee. First, there is greater supply than demand
Art. 1. Name of Decree. - This Decree shall be known as the Labor for labor. Second, the need for employment by labor comes
Code of the Philippines. from vital and even desperate necessity.
8 Article 24 of the Civil Code In all contractual property or other
COMMENT: relations, when one of the parties is at a disadvantage on
1. Salient Features of the Labor Code account of his moral dependence, ignorance, indigence, mental
a. It re-orients labor laws towards development and weakness, tender age or other handicap, the courts must be
employment goals; vigilant for his protection.
b. It institutionalizes the NLRC to facilitate the speedy 2. Extent of the Protection
settlement of labor disputes; 8 The protective mantle is available not only against oppressive
c. It establishes a new system of workmens employees but also against unscrupulous union leaders.
compensation; 8 Heirs of Teodulo Cruz vs. CIR The union is an agent of its
d. It establishes a system for employment of overseas members for the purpose of securing for them fair and just
workers and optimizes national benefit therefrom in the wages and good working conditions and is subject to the
form of dollar remittances and improved skills and obligation of giving the members as its principals all information
technology for our people; and relevant to union and labor matters entrusted to it. In the case,
e. It institutionalizes voluntary arbitration as a mode of the union leadership was recreant in its duty towards the union
settling labor disputes. members for failing to disclose the full situation of their judgment
credit against respondent. Fair dealings, which is fiduciary in
Art. 2. Date of Effectivity. This Code shall take effect six (6) nature, arises from two factors:
months after its promulgation. a. Degree of dependence of the individual employee on the
union organization
COMMENT: b. A corollary of the first; is the comprehensive power vested
1. Effectivity of the Labor Code in the union with respect to the individual.
8 Took effect on November 1, 1974
8 Promulgated on May 1, 1974 3. Limitations
a. Protection to labor cannot be used as a pretext to defeat the
Art. 3. Declaration of Basic Policy. The State shall afford rights and prerogatives of an employer. Thus, the validity of the
protection to labor, promote full employment, ensure equal work dismissal of an employee found guilty of violating rules designed
opportunities regardless of sex, race or creed and regulate the for the safety of the employees themselves, should be upheld
relations between workers and employers. The State shall because it protects labor and at the same time gives the
assurethe rights of workers to self-organization, collective employer its due.
bargaining, security of tenure, and just and humane conditions of b. Protection to labor cannot be used as an excuse to distribute
work. charities at the expense of an employer. Courts cannot render
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judgment on the basis of sympathies and inclinations, and Such RRs shall become effective 15 days after announcement of their
consequently, distribute charities at the expense of the adoption in newspapers of general circulation.
employer, because our constitutional government assures the A grant of quasi-legislative power to the DOLE and other govt
latter against deprivation of property except in accordance with agencies charged with the administration and enforcement of
the statues and supplementary equitable principles. the Labor Code or any part thereof.
c. Protection to labor is not available where both parties have 8 POEA
violated the law because in such a case, neither party is entitled 8 National Wages and Productivity Commission
to protection. 8 Employees Compensation Commission
8 NLRC
Art. 4. Construction in Favor of Labor. All doubts in the Limitation: cannot enlarge or amend the provisions of the Labor
implementation and interpretation of the provisions of this Code, Code
including its implementing rules and regulations shall be resolved Effectivity of LC IRRs: February 3, 1975
in favor of labor. ART. 6. Applicability. All rights and benefits granted to workers under
this Code shall, except as may otherwise be provided herein, apply alike
COMMENTS: to all workers, whether agricultural or non-agricultural.
1. Reason for the Law The LC applies only to employees in the private sector, whether
8 Doubts are resolved in favor of labor in line with the principle agricultural or non-agricultural.
that those who have less in life should have more in law. Government employees: Civil Service Law
8 When conflicting interest of labor and capital are weighed on the GOCCs created by special charter: Civil Service Law
scales of social justice, the heavier influence of the latter must
GOCCs organized under the Corporation Law: LC
be counter-balanced by the sympathy and compassion the law
To be covered by the LC, there must be employer-employee
must accord the underprivileged worker.
relationship.
8 A contrary ruling would be a dilution and emasculation of the
E-E criteria: (Viana v. Al-LAgadan)
protection to labor clause of the Constitution.
1. Selection and engagement of employee
2. Applicability
8 Hiring
8 Article 4 applies only when there is a doubt.
8 Written contract, not necessary
8 When there is no doubt, there is no room for construction.
8 An understanding that one is to render service to the other,
8 Where the evidence is clear that an employee is not an asset
and a recognition by them of the right of one to order and
but a liability that delays production and sets a bad example to
control the other is sufficient
his co-workers, the courts should not hesitate to confirm or order
2. Payment of wages
his dismissal.
8 Wages remuneration of earnings
3. Limitation
8 Considered wages if paid in consideration of:
8 The fundamental principles of due process should sternly be
a) The labor being performed
applied on both the poor and the rich in order to attain proper
b) The results or finished work
justice.
3. Power of dismissal
8 The benevolent policy of the law towards te employee does not
8 Person hired is subjected to the rules of discipline of the
oblige courts to be unjust and unfair to employers.
employer
.
4. Power to control the employees conduct
ART. 5. Rules and Regulations. The Department of Labor and other
government agencies charged with the administration and enforcement 8 Most important element
of this Code or any of its parts shall promulgate the necessary IRRs.
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8 Control test: the person for whom the services are Any competent and relevant evidence may be admitted as proof
performed reserves the rights to control not only the end to of E-E relationship.
be achieved but also the means to be used in reaching such The E-E relationship is deemed suspended in the ff cases:
end. 1. When the employee is under suspension, either as a
8 The control should be on both the means and the end disciplinary penalty or as a preventive measure during the
Insurance agents: pendency of a disciplinary proceedings against him
1. Salaried personnel who keep definite hours and work under 2. During off season, in case of regular seasonal employees
the control and supervision of the company E-E 3. When fishing vessels are drydocked or undergoing repairs
relationship exists 4. When an employee is laid-off for a period not exceeding
2. Registered representatives who work on commission basis 6mos due to suspension of business operations
no E-E relationship 5. When an employee fulfills a civic or military duty
The nature of the relationship between a company and its Termination of E-E relationship:
collecting agents depends on the circumstances of each 1. Dismissal
particular relationship. 2. Resignation or abandonment of employment
There exists an E-E relationship between a corporation and an 3. Expiration of employment period
in-house lawyer as they are paid regular salaries Factors that do not interrupt employment relationship:
E-E relationship exists between a school and its professors. The 1. Leave of absence with pay
school has control over the work of the professors and the latter 2. Illegal dismissal
are compensated for their services by wages or salaries rather 3. Strike
than by profits.
No E-E relationship exists between working students and the CHAPTER II
colleges or universities. Such rule applies only to labor Emancipation of Tenants
controversies, not to civil suits for damages arising from a
tortuous act of a working student. Art. 7. Statement of objectives.Inasmuch as the old concept of land
E-E relationship between resident physicians and training ownership by a few has spawned valid and legitimate grievances that
hospitals exists, unless: gave rise to violent conflict and social tension and the redress of such
1. There is training agreement between them legitimate grievances being one of the fundamental objectives of the
2. The training program is duly accredited or approved by the New Society, it has become imperative to start reformation with the
appropriate government agency emancipation of the tiller of the soil from his bondage.
E-E relationship exists between hospitals and their consultants Art. 8. Transfer of lands to tenant-workers.Being a vital part of the
only for purposes of allocating responsibility in medical labor force, tenant-farmers on private agricultural lands primarily
negligence cases devoted to rice and corn under a system of share crop or lease tenancy
E-E relationship between a jeepney owner and driver under the whether classified as landed estate or not shall be deemed owner of a
boundary system exists. portion constituting a family-size farm of five (5) hectares, if not irrigated
There is no E-E relationship between a shipping company and and three (3) hectares, if irrigated.
the workers of stevedoring or arrastre company, unless the
same in fact acted as agent only. In all cases, the land owner may retain an area of not more than
An E-E relationship is created by contract and cannot be forced seven (7) hectares if such landowner is cultivating such area or will now
upon either party simply upon order of a labor arbiter. cultivate it.
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Art. 9. Determination of land value.For the purpose of determining the a. To promote and maintain a state of full employment through
cost of the land to be transferred to the tenant-farmer, the value of the improved manpower training, allocation and utilization;
land shall be equivalent to two and one-half (2-1/2) times the average
harvest of three (3) normal crop years immediately preceding the b. To protect every citizen desiring to work locally or overseas by
promulgation of Presidential Decree No. 27 on October 21, 1972. securing for him the best possible terms and conditions of
employment;
The total cost of the land, including interest at the rate of six
percent (6%) per annum, shall be paid by the tenant in fifteen (15) years c. To facilitate a free choice of available employment by persons
of fifteen (15) equal annual amortizations. seeking work in conformity with the national interest;
Art. 12. Statement of objectives.It is the policy of the State: b. "Recruitment and placement" refers to any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring or procuring
workers, and includes referrals, contract services, promising
or advertising for employment, locally or abroad, whether for
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profit or not: Provided, That any person or entity which, in any 8 Number of persons dealt with, not essential
manner, offers or promises for a fee, employment to two or Recruitment and Contracting/Subcontracting
more persons shall be deemed engaged in recruitment and placement
placement. The agency merely The contractor/subcontractor
engages a job applicant for undertakes a specific job or
c. "Private fee-charging employment agency" means any person the purpose of placing him service for a principal with the
or entity engaged in recruitment and placement of workers for with another employer use of its own employees
a fee which is charged, directly or indirectly, from the workers Needs a license or Doesnt
or employers or both. authority from the DOLE
f. "Authority" means a document issued by the Department of b. To organize and establish a nationwide job clearance and
Labor authorizing a person or association to engage in information system to inform applicants registering with a
recruitment and placement activities as a private recruitment particular employment office of job opportunities in other parts of
entity. the country as well as job opportunities abroad;
g. "Seaman" means any person employed in a vessel engaged c. To develop and organize a program that will facilitate
in maritime navigation. occupational, industrial and geographical mobility of labor and
provide assistance in the relocation of workers from one area to
h. "Overseas employment" means employment of a worker another; and
outside the Philippines.
d. To require any person, establishment, organization or institution
i. "Emigrant" means any person, worker or otherwise, who to submit such employment information as may be prescribed
emigrates to a foreign country by virtue of an immigrant visa by the Secretary of Labor.
or resident permit or its equivalent in the country of
destination. Purpose: to ensure the availability of adequate employment
services so that employment could be maximized through
Recruitment and placement efficient organization of the labor market.
8 Refers to any act of hiring or procuring workers. Functions of public employment office:
8 It includes: 1. Provide free placement of workers applying for both
a. Referrals domestic and overseas employment
b. Contract services
c. Promising or advertising a local or overseas job
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2. Provide adequate vocational guidance and testing 3. To formulate and develop employment programs
services to persons seeking help in choosing or designed to benefit disadvantaged groups and
changing an occupation communities;
3. Classify registered applicants in accordance with job
titles and codes of Philippine Standard Classification 4. To establish and maintain a registration and/or work
4. Arrange for the training or retraining of unemployed permit system to regulate the employment of aliens;
applicants in occupation or trades where they are
suitably qualified and where they have greater 5. To develop a labor market information system in aid
prospects of employment. of proper manpower and development planning;
5. Arrange for inter-area placements of unemployed
workers through a nationwide job clearance and 6. To develop a responsive vocational guidance and
information system testing system in aid of proper human resources
6. Furnish the Bureau of Local Employment or POEA with allocation; and
list of registered job applicants
Employers with at least 6 employees are obliged to submit a 7. To maintain a central registry of skills, except
monthly report to the nearest public employment office, on the ff: seamen.
1. List of existing job vacancies or openings
2. List of new employees, if there are any b. (Repealed by E.O. 797)
3. Termination, lay-off or retirement
4. Total number of employed workers for the period; and c. The Minister of Labor shall have the power to impose and
5. Request for assistance, if needed to fill vacancies or collect fees based on rates recommended by the Bureau of
openings Employment Services. Such fees shall be deposited in the
National Treasury as a special account of the General Fund,
Art. 15. Bureau of Employment Services. for the promotion of the objectives of the Bureau of
Employment Services, subject to the provisions of Section 40
of Presidential Decree No. 1177.
a. The Bureau of Employment Services shall be primarily
responsible for developing and monitoring a comprehensive
employment program. It shall have the power and duty: Art. 16. Private recruitment. Except as provided in Chapter II of this
1. To formulate and develop plans and programs to Title, no person or entity other than the public employment offices, shall
implement the employment promotion objectives of engage in the recruitment and placement of workers.
this Title;
Purpose: intended to eliminate malpractices in the recruitment
2. To establish and maintain a registration and/or and placement of workers and to enable the Government to
licensing system to regulate private sector have a firmer control of the labor market.
participation in the recruitment and placement of Gen. Rule: only public employment offices can engage in
workers, locally and overseas, and to secure the best recruitment and placement of workers, whether for local or
possible terms and conditions of employment for overseas employment.
Filipino contract workers and compliance therewith Exception: the private sector is given the privilege to engage in
under such rules and regulations as may be issued by recruitment and placement, but limited to the ff:
the Minister of Labor;
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a. Private employment agency 8 E.O. No. 797 promulgated on May 1, 1982 abolished the
refers to any person or entity engaged in the recruitment Overseas Employment Development Board (OEDB).
and placement of workers for a fee which is charged directly 8 The Philippine Overseas Employment Administration (POEA)
or indirectly, from the workers or employers or both. was created instead.
8 POEA took over functions of OEDB and overseas functions of
b. Private recruitment entity Bureau of Employment Services.
refers to any person or association engaged in the
recruitment and placement of workers, locally or overseas, 2. Overseas Employment
without charging, directly or indirectly, any fee from the 8 means employment of a worker outside the Philippines under a
workers or employers. valid contract.
8 A worker who holds an overseas employment is commonly
c. Shipping or manning agency called a migrant worker.
refers to any person, partnership, or corporation duly 8 Migrant worker not only refer to land-based workers but also to
licensed by the Secretary of DOLE or his duly authorized seafarers.
representative to recruit and deploy seafarers for maritime 8 The definition of overseas employment does not make any
employment. distinction regarding the nationality of the employer.
8 It is not essential that the principal employer should be a
d. Such other persons or entities as may be authorized by the foreigner or non-Filipino in order that an employee could be
Secretary of DOLE considered to be holding an overseas employment.
8 The rationale for this is that Filipinos working overseas share the
Art. 17.Overseas Employment Development Board.-An Overseas same risks and burdens, whether their employers are Filipino or
Employment Development Board is hereby created to undertake, in non-Filipino.
cooperation with relevant entities and agencies, a systematic 8 Eastern Shipping Lines vs. POEA
program for overseas employment of Filipino workers in excess of
domestic needs and to protect their rights to fair and equitable 3. The Philippine Pverseas Employment Administration (POEA)
employment practices. It shall have the power and duty: 8 POEA is the regulatory body for overseas employment.
To promote the overseas employment of Filipino workers
through a comprehensive market promotion and development 8 It has original and exclusive jurisdiction to hear and decide:
program; a. All cases which are administrative in character, involving or
To secure the best possible terms and conditions of arising out of violations of recruitment laws, rules and
employment of Filipino contract workers on a government-to- regulations, including refund of fees collected from workers
government basis and to ensure compliance therewith; and violation of the conditions for the issuance of license to
To recruit and place workers for overseas employment on a recruit landbased overseas workers or seafarers; and
government-to-government arrangement and in such other sectors b. Disciplinary action cases against migrant workers or
as policy may dictate; and seafarers, foreign employers and principals that are
To act as secretariat for the Board of Trustees of the administrative in character.
Welfare and Training Fund for Overseas Workers.
8 Decisions of the POEA are appealable to the Secretary of Labor
COMMENTS: and Employment within 15 days from receipt of decision.
1. Overseas Employment Development Board Now Abolished
4. Recruitment Violations
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4.1 Against Land-based Overseas Workers employment program unless cleared by the POEA or the
4.2 Against Seafarers penalty imposed is lifted.
5.2 Against Overseas Land-based Workers
5. Grounds for Disciplinary Action
5.1 Against Foreign Employers of Land-based Workers 8 The following are the grounds for disciplinary actions against
overseas land-based workers:
8 The following are the grounds for disciplinary action against a. Pre-employment Offenses
foreign principals or employers of land-based workers: i. Using, providing or submitting false information or
a. Default on its contractual obligations to the migrant worker documents for purposes of job application or
and/or to its Philippine agent. employment
b. Gross violation of laws, rules and regulations on overseas ii. Unjustified refusal to depart for the worksite after all
employment employment and travel documents have been duly
c. Gross negligence leading to serious injury or illness or approved by the appropriate government agencies.
death of the worker
d. Grave misconduct b. Offenses During Employment
e. Conviction of an offense involving moral turpitude i. Commission of a felony or crime punishable by
f. Any other case analogous to the foregoing. Philippine laws or by the laws of the host country.
ii. Unjustified breach of employment contract
8 A foreign employer or principal against whom a complaint for iii. Embezzlement of company funds or monies and/or
disciplinary action has been filed shall be temporarily properties of a fellow worker for delivery to kin or
disqualified from participating in the overseas employment relatives in the Philippines.
program until he submits to the jurisdiction of the POEA iv. Violation of the sacred practices of the host country
8 Once the foreign employer or principal submits to the jurisdiction 8 A respondent worker subject of a pending complaint for
of the POEA, particularly upon filing of an answer in the disciplinary action, or those against whom a warrant of arrest or
disciplinary action proceedings, he shall again be qualified to hold departure order is issued by competent authority shall be
participate in the overseas employment program without disqualified from overseas employment unless temporarily
prejudice to the outcome of the investigation whereby the proper cleared.
penalty shall be imposed.
8 Upon filing of an answer the disciplinary action proceedings, the
8 However, if the evidence of guilt is strong and there is respondent worker shall be qualified for overseas employment
reasonable ground to believe that the continued deployment to without prejudice to the outcome of the investigation whereby
the principal or employer will result to further violation or the proper penalty may be imposed.
exploitation of migrant workers, a principal or employer may be
suspended (preventively) from participating in the overseas 8 If the evidence of guilt is strong and the charge involves a
recruitment program pending investigation of the disciplinary serious offense, the migrant worker may be preventively
action case. suspended during the pendency of the disciplinary proceedings.
8 If the penalty of suspension or disqualification is imposed 8 If the penalty of suspension or disqualification is imposed
through an order, decision or resolution, the foreign employer or through an order, decision or resolution, the worker shall be
principal shall be disqualified from participating in the overseas
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disqualified from overseas employment unless cleared by the i. Submission/furnishing or using false information or
POEA or the penalty imposed had been lifted. documents or any form of misrepresentation for purpose
of job application or employment
5.3 Against Foreign Principals or Employers of Seafarers ii. Unjust refusal to join ship after all employment and
8 The following are the grounds for disciplinary action against travel documents have been duly approved
foreign principals or employers of seafarers: b. Offenses During Employment
a. Default on its contractual obligations to the seafarer and/or 1. Smuggling or violation of any customs rule and
to its Philippine agent regulations of the Philippines and of foreign ports
b. Gross violation of laws, rules and regulations on overseas i. Smuggling any taxable item
employment ii. Possession or use of prohibited drugs, narcotics
c. Grave misconduct and other contraband
d. Conviction of an offense involving moral turpitude iii. Gun-running or possession of explosives and the
e. Gross negligence leading to serious injury or illness or like
death of the seafarer iv. Abetting or conniving with others to commit
f. Any other case analogous to the foregoing smuggling
8 A foreign employer or principal against whom a complaint for v. Misdeclaration of or failing to declare articles
disciplinary action has been filed shall be temporarily leading to their seizure and fine to vessel
disqualified from participating in the maritime employment vi. Misdeclaration of or failing to declare articles
program until he submits to the jurisdiction of the POEA leading to their seizure but vessel is not implicated
8 Once the principal or employer submits to the jurisdiction of the vii. Possession of pornographic materials leading to its
POEA, particularly upon filing of an answer in the disciplinary seizure and fine to the vessel
action proceedings, he shall again be qualified to participate in viii. Any other violation which will not implicate the
the maritime employment program without prejudice to the vessel
outcome of the investigation whereby the proper penalty shall ix. Any violation which will implicate the vessel
be imposed. 2. Desertion
8 But if the evidence of guilt is strong and there is reasonable i. Deserting or attempting to desert employment
ground to believe that the continued deployment to the principal ii. Advising, assisting or persuading another to desert
or employer will result to further violation or exploitation of employment
seafarers, the principal or employer may be suspended 3. Absence without leave
(preventively) from participating in the overseas recruitment i. Abandoning the post or duty without being properly
program pending investigation of the disciplinary action case relieved
when. ii. Leaving vessel without permission from responsible
8 If the penalty of suspension or disqualification had been officers during working hours
imposed through an order, decision or resolution, the foreign iii. Entrusting to others assigned duties without
employer or principal shall be disqualified from participating in authority of the department head
the maritime employment unless cleared by the POEA or the iv. Leaving vessel without permission
penalty imposed is lifted. 4. Sleeping on post while on duty
5.4 Against Seafarers 5. Insubordination
8 The following are the grounds for disciplinary action against i. Any act of disobedience to lawful orders of a superior
seafarers: officer
a. Pre-employment Offenses ii. Attempting to assault a superior officer
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iii. Assaulting a superior officer/other persons on x. Immorality as to cast aspersion on the good name
business with the ship without the use of deadly of the vessel and company
weapon xi. Willfully inflicting harm or injury to others
iv. Assaulting a superior officer/other persons on 10. Incompetency and inefficiency
business with the ship with the use of deadly 11. Inciting mutiny, malicious destruction of ships property
weapon at any activity which will hamper the efficient operation
v. Behaving with disrespect towards a superior officer of the vessel
vi. Insulting a superior officer by words or deed 12. Converted action to breach approved contracts
vii. Inciting another to commit insubordination 13. Any activity which tends to destroy harmonious
6. Drunkenness relationship of the company
i. Being drunk while on duty 14. Grave abuse of authority
ii. Creating trouble on board due to intoxication i. Grave abuse of authority (with use of deadly
iii. Failure to perform assigned jobs due to intoxication weapon) resulting in harm or injury to subordinate
7. Creating trouble outside the vessels premises ii. Grave abuse of authority (without use of deadly
8. Gambling weapon) resulting in harm or injury to subordinate
i. Which results in fighting or any incident as to upset iii. Any other case of abuse of authority
the harmonious relationship on board the vessel 15. Other gross misbehaviors prejudicial to good order and
ii. Any form of gambling which is not purely discipline
recreational 16. Negligence causing damage, loss, spoilage or
9. Violation of company policies deterioration of vessels stocks and property
i. Pilferafe or theft of ships store or cargo 17. Connivance with of cuddling of stowaway
ii. Embezzlement of company funds or monies and/ 18. Willfully making false statement, reports, certification or
or properties of a fellow worker entrusted for spurious seafarers documents for personal gain or with
delivery to kin or relatives in the Philippines intent to mislead or defraud the company
iii. Unauthorized disposal of company vessels 19. Any other cases as to cast aspersion on the good name
properties for personal gain of the company and vessel
iv. Any act of dishonesty with intention to defraud the 20. Violation of safety and environmental rules and
company regulations
v. Gross negligence and failure to observe proper 21. Failure to observe the drug and alcohol policy of the
storage and cargo handling procedures resulting in company.
delay of vessels and/or damage to cargoes 6. Enforcement of a Foreign Judgment
vi. Failure to observe and comply with regulation and 8 The POEA has no jurisdiction to hear and decide a suit for
non-baggage shipment and acceptance of parcels enforcement of a judgment rendered by a foreign court.
on board. 8 Action of this nature should be brought before the regular courts
vii. Failure to observe regulations on expiration of of justice.
liberty
viii. Being left behind by vessel in foreign port without 7. Power of POEA to Recruit and Place Workers
justifiable reason 8 The POEA has the power to recruit and place workers on a
ix. Disorderly conduct and/or disrespect towards government-to-government arrangement, particularly with
passengers regard to the hiring requirements of foreign government
instrumentalities.
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8 It may recruit and place workers for foreign employers in such orientation/ briefing.
sectors as the policy may dictate.
Article 19.Office of Emigrant Affairs. - Pursuant to the national
policy to maintain close ties with Filipino migrant communities and
Art. 18.Ban on direct-hiring.- No employer may hire a Filipino promote their welfare as well as establish a data bank in aid of
worker for overseas employment except through the Boards and national manpower policy formulation, an Office of Emigrant
entities authorized by the Secretary of Labor. Direct-hiring by Affairs is hereby created in the Department of Labor. The Office
members of the diplomatic corps, international organizations and shall be a unit at the Office of the Secretary and shall initially be
such other employers as may be allowed by the Secretary of Labor manned and operated by such personnel and through such
is exempted from this provision. funding as are available within the Department and its attached
agencies. Thereafter, its appropriation shall be made part of the
COMMENTS: regular General Appropriations Decree.
1. Rationale for the Law The office shall, among others, promote the well-being of
8 Art. 18 is intended to enable the monitoring of overseas contract emigrants and maintain their close link to the homeland by:
workers and serving as a liaison with migrant communities;
8 to ensure that Filipino overseas workers are afforded fair and provision of welfare and cultural services;
equitable recruitment and employment practices thereby promote and facilitate re-integration of migrants into the
assuring the best terms and conditions of employment and national mainstream;
facilitating the enforcement of employment contracts. promote economic; political and cultural ties with the
communities; and
2. Exception to the Ban on Direct-Hiring generally to undertake such activities as may be
8 prohibition against direct hiring of overseas workers does not appropriate to enhance such cooperative links.
apply to workers hired by:
a. members of the diplomatic corps; COMMENTS:
b. international organizations; and Superseded by Batas Pambansa Blg. 79
c. other employers who may be allowed by the Secretary of
Labor and Employment to directly hire their workers. Article 20.National Seamen Board. - A National Seamen Board is
hereby created which shall develop and maintain a comprehensive
3. Name Hire program for Filipino seamen employed overseas. It shall have the
8 A name hire is a worker who is able to secure an overseas power and duty:
employment on his own without the assistance or participation To provide free placement services for seamen;
of any agency. To regulate and supervise the activities of agents or
representatives of shipping companies in the hiring of seamen for
4. Registration of Name Hires overseas employment and secure the best possible terms of
8 Name hires should register with the POEA by submitting the employment for contract seamen workers and secure compliance
following documents: therewith;
a. Employment contract To maintain a complete registry of all Filipino seamen.
b. Valid passport The Board shall have original and exclusive jurisdiction
c. Employment visa or work permit, or equivalent document over all matters or cases including money claims, involving
d. Certificate of medical fitness employer-employee relations, arising out of or by virtue of any law
e. Certificate of attendance to the required employment or contracts involving Filipino seamen for overseas employment.
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The decisions of the Board shall be appealable to the National of Foreign Affairs and the Philippine Foreign Service Posts.
Labor Relations Commission upon the same grounds provided in 8
Article 223 hereof. The decisions of the National Labor Relations 2. Country-Team Approach
Commission shall be final and inappealable. 8 As enunciated under Executive Order No. 74 series of 1993, the
country-team approach shall be the mode under which
COMMENTS: Philippine embassies or their personnel will operate in the
Repealed by Executive Order No. 797 protection of the Filipino migrant workers as well as in the
promotion of their welfare.
Article 21.Foreign service role and participation.- To provide ample
protection to Filipino workers abroad, the labor attaches, the labor 8 All officers, representatives and personnel of the Philippine
reporting officers duly designated by the Secretary of Labor and government posted abroad regardless of their mother agencies
the Philippine diplomatic or consular officials concerned shall, shall, on a per country basis, act as one country-team with a
even without prior instruction or advice from the home office, mission under the leadership of the ambassador
exercise the power and duty:
To provide all Filipino workers within their jurisdiction 8 The ambassador may recommend to the Secretary of DFA the
assistance on all matters arising out of employment; recall of officers, representatives and personnel of the Philippine
To insure that Filipino workers are not exploited or government posted abroad for acts inimical to the national
discriminated against; interest such as, but not limited to failure provide the necessary
To verify and certify as requisite to authentication that the services to protect the right of overseas Filipinos.
terms and conditions of employment in contracts involving Filipino
workers are in accordance with the Labor Code and rules and 3. Services Available to Migrant Filipino Workers
regulations of the Overseas Employment Development Board and 8 To protect and promote the welfare of migrant Filipino workers,
National Seamen Board; the following services are being extended by the government:
To make continuing studies or researches and
recommendations on the various aspects of the employment a. Travel Advisory / Information Dissemination - all embassies
market within their jurisdiction; and consular offices, through POEA, are obliged to issue
To gather and analyze information on the employment travel advisories on labor and employment conditions,
situation and its probable trends, and to make such information migration realities and other facts. This is intended to
available; and prevent illegal recruitment, fraud and exploitation or abuse
To perform such other duties as may be required of them of Filipino migrant workers.
from time to time.
b. Repatriation of Workers The Overseas Workers Welfare
COMMENTS: Administration (OWWA), shall undertake the repatriation of
1. Reason for the Law workers in case of war, epidemic, disasters or calamities
8 Art. 21 is intended to protect the overseas workers by ensuring natural or man-made, and other similar events without
that they are not exploited or discriminated against. prejudice to reimbursement by the responsible principal or
8 agency. In case the principal or agency cannot be identified,
8 The protection of the Filipino migrant worker and the promotion all costs attendant to repatriations shall be borne by the
of their welfare, in particular, and the protection of the dignity OWWA.
and fundamental rights and freedoms of Filipino citizens abroad,
in general, shall be the highest priority concerns of the Secretary c. Mandatory Repatriation of Underage Migrant Workers
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upon discovery or being informed of the presence of migrant
workers whose actual ages fall below the minimum age 8 The Center has a counterpart 24-hour information and
requirement for overseas deployment, the responsible assistance at the DFA to ensure a continuous network and
officers in foreign service shall without delay repatriate said coordinative mechanism at the home office.
workers and advise the DFA through the fastest means of
communication available of such discovery and other 4. The Legal Assistant for Migrant Workers Affairs
relevant information. 8 The Legal Assistant for Migrant Workers Affairs (which is under
d. Migrant Workers and Other Overseas Filipinos Resource the DFA) is primarily responsible for the provision and overall
Center within the premise of and under the administrative coordination of all legal assistance services to be provided to
jurisdiction of the Philippine embassy where there are large Filipino migrant workers as well as overseas Filipinos in
concentrations of Filipino migrant workers, a Migrant distress. Among the functions and responsibilities of the Legal
Workers and Other Overseas Filipinos Resource Center Assistant are:
have been established for the purpose of extending the
following services: a. To issue guidelines, procedure and criteria for the provision
of legal assistance services to Filipino migrant workers
i. Counseling and legal services b. To establish close linkages with the DOLE, POEA, OWWA
ii. Welfare assistance including the procurement of and other government agencies concerned, as well as non
medical and hospitalization services. governmental organizations assisting migrant workers, to
iii. Information, advisory and programs to promote social ensure effective coordination and cooperation in the
integration such as post-arrival orientation, settlement provision of legal assistance to migrant workers
and community networking services and activities for c. To tap the assistance of reputable law firms and the
social interaction Integrated Bar of the Philippines and other bar associations
iv. Institute a scheme of registration of undocumented to complement the governments efforts to provide legal
workers to bring them within the purview of the Migrant assistance to migrant workers
Workers and Overseas Filipinos Act of 1995 d. To administer the legal assistance fund for migrant workers
v. Human resource development, such as training and and authorize disbursements therefrom in accordance with
skills upgrading the purposes for which the fund was set up
vi. Gender sensitive programs and activities to assist e. To keep and maintain the shared government information
particular needs of women migrant workers system form migrant workers.
vii. Orientation program for returning workers and other
migrants 8 The Legal Assistant for Migrant Workers Affairs is authorized to
viii. Monitoring of daily situations, circumstances and hire private lawyers, domestic or foreign, in order to assist him in
activities affecting migrant workers and other overseas the effective discharge of his functions.
Filipinos.
5. Role of Government Agencies
8 The center is open for 24 hours daily including Saturdays, 8 The following government agencies shall perform the following
Sundays and holidays, and staffed by foreign service personnel, to promote the welfare and protect the rights of migrant workers
service attaches or officers who represent other Philippine and, as far as practicable, all overseas Filipinos:
government agencies abroad and if available, individual
volunteers and bona fide non-government organizations from a. DFA The Department, through its home office or foreign
the host countries. posts, shall take priority action or make representation with
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the foreign authority concerned to protect the rights of remit a portion of their foreign exchange earnings to their
migrant workers and other overseas Filipinos and extend families, dependents and beneficiaries.
immediate assistance including the repatriation of a. 80% of basic salary for seamen or mariners
distressed or beleaguered migrant workers and other b. 70% of basic salary for workers of Filipino contractors and
overseas Filipinos. construction companies
c. 70% of basic salary for doctors, engineers, teachers,
b. DOLE The Department of Labor and Employment shall nurses and other professional workers whose employment
see to it that labor and social welfare laws in the foreign contracts provide for free board and lodging facilities
countries are fairly applied to migrant workers and d. 50% of basic salary for other professionals whose
whenever applicable, to other overseas Filipinos including employment contracts do not provide for free board and
the grant of legal assistance and referral to proper medical lodging
centers or hospitals. e. 50% of basic salary for domestics and other service
workers
c. POEA The POEA shall regulate private sector f. 50% of basic salary for other workers not falling under the
participation in the recruitment and overseas placement of aforementioned categories.
workers by setting up a licensing and registration system. It 2. Exceptions to the Remittance Requirement
shall also formulate and implement, in coordination with 8 The following workers are not obliged to remit a portion of their
appropriate entities concerned, when necessary, a system foreign exchange earnings:
for promoting and monitoring the overseas employment of a. Workers whose immediate family members, dependents or
Filipino workers taking into consideration their welfare and beneficiaries are residing with him abroad
domestic manpower requirements. b. Filipino servicemen working in the U.S. military installations
c. Immigrants and Filipino professionals and employees
d. OWWA The Welfare Officer or in his absence, the working with the United Nations agencies or specialized
coordinating officer, shall provide the Filipino migrant worker bodies.
and his family all the assistance they may need in the
enforcement of contractual obligations by agencies or Article 23.Composition of the Boards. - The OEDB shall be
entities and/or their principals. In the performance of this composed of the Secretary of Labor and Employment as Chairman,
function, he shall make representation and may call on the the Undersecretary of Labor as Vice-Chairman, and a
agencies or entities concerned to conference or conciliation representative each of the Department of Foreign Affairs, the
meetings for the purpose of settling the complaints or Department of National Defense, the Central Bank, the Department
problems brought to his attention. of Education, Culture and Sports, the National Manpower and
Youth Council, the Bureau of Employment Services, a workers
Article 22.Mandatory remittance of foreign exchange earnings.- It organization and an employers organization and the Executive
shall be mandatory for all Filipino workers abroad to remit a Director of the OEDB as members.
portion of their foreign exchange earnings to their families, The National Seamen Board shall be composed of the
dependents, and/or beneficiaries in the country in accordance with Secretary of Labor and Employment as Chairman, the
rules and regulations prescribed by the Secretary of Labor. Undersecretary of Labor as Vice-Chairman, the Commandant of the
Philippine Coast Guard, and a representative each of the
COMMENTS: Department of Foreign Affairs, the Department of Education,
1. Remittance of Portion of the Workers Foreign Exchange Earnings Culture and Sports, the Central Bank, the Maritime Industry
8 Art. 22 makes it mandatory for all overseas Filipino workers to Authority, the Bureau of Employment Services, a national shipping
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association and the Executive Director of the NSB as members. rules and regulations as may be issued by the Secretary of Labor.
The members of the Boards shall receive allowances to be
determined by the Board which shall not be more than P2,000.00
per month. COMMENTS:
The Boards shall be attached to the Department of Labor 1. Recruitment and Placement of Employees for Local Employment
for policy and program coordination. They shall each be assisted 8 A private recruitment and placement agency for local
by a Secretariat headed by an Executive Director who shall be a employment can engage in recruitment and placement only
Filipino citizen with sufficient experience in manpower under the following conditions:
administration, including overseas employment activities. The a. It must have a license to operate as a recruitment and
Executive Director shall be appointed by the President of the placement agency.
Philippines upon the recommendation of the Secretary of Labor b. It must have an authority to engage in recruitment
and shall receive an annual salary as fixed by law. The Secretary of activities in a particular region.
Labor shall appoint the other members of the Secretariat.
The Auditor General shall appoint his representative to the 1.1 Procedure for Obtaining a License
Boards to audit their respective accounts in accordance with 8 A person desiring to operate a private employment
auditing laws and pertinent rules and regulations. agency for local employment should:
a. File an application for license with the Regional
COMMENTS: Office of the Department of Labor and Employment
Repealed by Executive Order No. 797 having jurisdiction over the place where the
applicant seeks to establish his main office
Article 24.Boards to issue rules and collect fees.- The Boards shall b. Pay a filing fee of P500, if single proprietor or
issue appropriate rules and regulations to carry out their functions. P2000, if corporation or partnership
They shall have the power to impose and collect fees from 8 The following documents should be attached to the
employers concerned, which shall be deposited in the respective application for license:
accounts of said Boards and be used by them exclusively to a. Certified copy of the Certificate of Registration of
promote their objectives. firm or business name from the DTI, in the case of a
single proprietorship, or a certified copy of the
COMMENTS: Articles of Incorporation duly registered with the
Superseded by Executive Order No. 247 SEC, in the case of a partnership or corporation
b. A sworn statement of assets and liabilities and/or a
CHAPTER 2 duly audited financial statement, as the case may
REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES be
c. Owners certificate/titleof office location or contract
Article 25.Private sector participation in the recruitment and of lease of office space for at least 2 years.
placement of workers.- Pursuant to national development d. NBI clearance of the applicant, or the partners in the
objectives and in order to harness and maximize the use of private case of partnership or all the officers and members
sector resources and initiative in the development and of the Board of Directors, in the case of corporation
implementation of a comprehensive employment program, the e. Income tax return for the last 2 years
private employment sector shall participate in the recruitment and f. A verified undertaking that the applicant shall:
placement of workers, locally and overseas, under such guidelines, i. Not engage in recruitment of children below 15 years of
age or place children below 18 years old in hazardous
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occupation in accordance with RA No. 7610 as 8 The license is valid all over the Philippines.
amended by RA No. 7658 and other related laws 1.3 Renewal of License
8 The license of a private employment agency for local
ii. Assume full responsibility for all claims and liabilities employment may be renewed not later than 30 days
which may arise in connection with the use of the before its expiration.
license. 8 A private employment agency will not be allowed to
renew its license:
g. Organizational structure and list of all officers and a. If it has been convicted by the regular courts for
personnel with their respective bio-data, 2 passport- violation of the Labor Code, as amended, and its
size ID pictures and a detailed description of their Implementing Rules
duties and responsibilities b. If its license has been previously revoked.
h. Specific address and location map of the Office or 1.4 Conduct of Recruitment
proposed Office 8 Apart from the license, a private employment agency
i. List of all authorized representatives, if any, who for local employment is obliged to secure an
must be at least high school graduate, with their authority to recruit workers within a particular region.
corresponding bio-date, 2 passport-size ID pictures, 8 The authority to recruit shall be terminus with the
high school diploma or other proof of educational license, unless sooner revoked/canceled by the
attainment duly authenticated, NBI clearance and issuing Regional Office or terminated by the Agency.
Special Power of Attorney. 8 The authority to recruit may be obtained by filing with
8 Within 15 days from the issuance of the license, the the Regional Office of the DOLE having jurisdiction
employment agency shall publish once in a newspaper of over the place where the recruitment activities will be
general circulation the license number, names and undertaken, an application for authority to recruit with
pictures of authorized representatives and submit a copy the following supporting documents:
thereof to the DOLE a. Letter request by the agency
8 The license (original or a copy thereof) shall be displayed b. Copy of current license
conspicuously at all times in the premises of the private c. Certification under oath of licensee on the
recruitment and placement agency proposed recruitment activities of the
8 In addiction to the foregoing requirements, an applicant representative
for a license to operate a private recruitment and d. NBI clearance and bio-data of the representative
placement agency for local employment must possess the with 2 ID pictures
following qualifications: e. Clearance from previous agency, if applicable
a. The owner, partners or officers of the corporation f. Previous authority to recruit in case of renewal.
must be of good moral character and not otherwise 8 The application (new or renewal) may be denied on
disqualified by law any of the following grounds:
b. Must have an office space with a minimum floor a. Non-compliance with the requirements
area of 50 square meters. b. Unresolved illegal recruitment case
1.2 Duration of License c. Pendency of case against the applicant or the
8 The license of a private employment agency for local agency
employment is valid for 2 years from date of 8 Duly authorized representatives of a private recruitment and
issuance, subject to submission of proof of placement agency for local employment can engage in
publication. recruitment activities if their names are registered with the
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Regional Office of the DOLE. Steps to be followed in the to it that the terms and conditions of the
recruitment of workers for local employment are: recruitment contract are followed strictly.
a. The Agency or its duly authorized representative 2. Recruitment and Placement of Employees for Overseas
shall present to the PESO, Provincial and District Employment
Office where the recruitment activity is to be 2.1 For Land-Based Overseas Employment
undertaken, a copy of existing license, and 8 A private employment agency for land-based overseas
original copy of authority to recruit issued by the employment can engage in recruitment and placement only
Regional Office concerned. under the following conditions:
b. The representative shall require the recruit to a. It should have a license to operate
submit a copy of each of the following: b. It should recruit and place workers only for foreign
i. Birth certificate from the local civil registrar principals or projects registered and accredited by
ii. Medical certificate issued by a government physician or the POEA.
by a reputable private medical practitioner 2.2 For Overseas Maritime Employment
c. The Agency or its authorized representative and 8 A manning agency for overseas maritime employment can
the recruit shall enter into a recruitment contract, engage in recruitment and placement only under the following
duly notarized a copy of which shall be submitted conditions:
to the Regional Office where recruitment activity a. It should have a license to operate
was undertaken. b. It should recruit and place seafarers only for
d. The Agency or its duly authorized representative foreign principals registered and accredited by the
shall submit a list of the names and addresses of POEA.
its recruits together with a copy of their birth c. It should place seafarers only on vessels that are
certificates and medical certificates, to the enrolled with the POEA.
Regional offices or the appropriate Provincial 2.3 Procedure for Obtaining a License
District Office where recruitment was undertaken 2.3.1 For Land-Based Overseas Employment
for appropriate authentication and validation. 8 A person desiring to operate a private
Copies of these documents shall be furnished to employment agency for land-based
the Regional Office of destination of the recruit. overseas employment should
e. After the recruitment activity, the Regional Office a. File an application for license with the
of origin shall issue a certification to the Agency POEA
or its duly authorized representative that the b. Pay a filing fee of P10000
recruitment activity has been in accordance with 8 The following documents should be
the rules, copy furnished the Marine Policy/Coast attached to the application for license
Guard/Philippine National Police, as the case may a. Certified copy of Articles of
be. Incorporation or Articles of Partnership
f. Provide to the recruit with a stamped envelope duly registred with the Securities and
form indicating the name, address of recruit and Exchange Commission (in case of a
the name, address, telephone number of his/her corporation or partnership) or
employer to be sent to the parent. Certificate of Registration of firm or
g. Prior to deployment, the Regional Office of origin business name with the DTI (in case of
shall notify the Regional Office of destination of a single proprietorship)
the arrival of the recruits, and the latter shall see b. Proof of financial capacity consisting of
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For single proprietorship or partnership clearance from his country of origin
verified income tax returns for the shall be required
past 2 years and a savings account e. A verified undertaking that the
certificate showing a maintaining applicant shall:
balance of not less than P500k i. Select only medically and
accompanied by the applicants technically qualified recruits
authorization to examine such bank ii. Assume full and complete
deposit. responsibility for all claims and
For newly organized corporation liabilities which may arise in
Savings account certificates showing a connection with the use of license
maintaining balance of not less than iii. Assume joint and solidary liability
P500k accompanied by an with the employer for all claims that
authorization to examine such bank may arise in connection with the
deposits implementation of the contract,
For existing corporation Verified including but not limited to,
financial statement, corporate tax payment of wages, death and
returns for the past 2 years and disability compensation and
savings account deposit of at least repatriation
P500k accompanied by an iv. Guarantee compliance with the
authorization to examine such deposit. existing labor and social
c. Proof of marketing capability of: legislations of the Philippines and
i. A duly executed Special Power of of the country of employment of
Attorney and/ or a duly concluded recruited workers
Recruitment/ Service Agreement v. Assume full and complete
ii. Manpower request or visa responsibility for all acts of its
certification from new employer or officials, employees and
principal for not less than 100 representatives done in connection
workers with recruitment and placement
iii. Certification from Pre-employment vi. Negotiate for the best terms and
Services Office of the POEA on the conditions of employment
existence of the new market. vii. Disclose the full terms and
d. Clearance of all members of the Board conditions of employment to the
of Directors, partner or proprietor of applicant workers
the applicant agency from the National viii. Deploy at least 100 workers to
Bureau of Investigation and other its new markets within 1 year from
government agencies as may be the issuance of its license
required; appropriate clearance in ix. Provide orientation on recruitment
case of persons with criminal cases; procedures, terms and conditions
provided that where the member or and other relevant information to its
partner concerned is a foreigner, a workers and provide facilities
therefore
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x. Repatriate the deployed workers b. Pay a filing fee of P10k
and his personal belongings when 8 The following documents should be
the need arises. attached to the application for license
f. Verified undertaking by its officers, a. Certified copy of Articles of
directors, partners (in case of Incorporation or Articles of Partnership
corporations or partnerships) that they duly registered with the SEC (in case
will be jointly and severally liable of a corporation or partnership) or
g. Individual income tax return of the Certificate of Registration of firm or
proprietor, partners, business name with the DTI (in case of
stockholders/incorporators, as the single proprietorship)
case may be for the past 2 years b. Proof of financial capacity (check
h. Proof of possession by the sole book)
proprietor, partner or chief executive c. Proof of marketing capability (check
officer, as the case may be, of a book)
bachelors degree and 3 years d. Clearance of all members of the Board
business experience. of Directors, partner or proprietor of
i. List of all officials and persons the applicant agency from the NBI,
involved in the recruitment and Anti-Illegal Recruitment Branch of the
placement, together with their POEA and other government agencies
appointment, bio-data and 2 copies of as the need may require; provided that
their passport-sized pictures as well as where the member or partner
their clearances from the NBI and the concerned is a foreigner, a clearance
Anti-Illegal Recruitment Branch of the from his country of origin shall be
POEA required
j. Copy of the Contract of Lease or proof e. Verified undertaking that the applicant
of building ownership, indicating the shall:
office address, providing for an office i. Provide its seafarers orientation on
space of at least 100 square meters. recruitment policies and
k. Proof of publication of notice of the procedures, terms and conditions
application with the names of the of employment and other relevant
proprietor, partners, incorporators or information
officers ii. Ensure that any seafarer recruited
l. Certificate of attendance of owner or deployed by them is qualified
and/or chief executive officer in a pre- and holds the documents
application seminar conducted by the necessary for the job concerned
POEA. iii. Ensure that contracts of
2.3.2 For Overseas Maritime Employment employment are in accordance with
8 A person desiring to operate a manning the standard employment contract
agency for overseas employment should and other applicable laws,
a. File an application for license with the regulations and collective
POEA bargaining agreements
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iv. Ensure that seafarers are informed representatives done in connection
of their rights and duties under their with recruitment and placement
contracts of employment and the xi. Deploy at least 50 workers to its
duties of agreement prior to or in new markets within 1 year from the
the process of engagement issuance of its license which shall
v. Ensure that proper arrangements also be a condition to the
are made for seafarers to examine accreditation of old principals
their contracts of employment and xii. Repatriate the deployed workers
articles of agreement before and and his personal belongings when
after they are signed and for them the need arises.
to receive a copy of the contract of f. Verified undertaking by its officers,
employment directors, partnersthat they will be
vi. Ensure that the vessel and the jointly and severally liable with the
crew are adequately covered by company over claims arising from
P&I Club or similar insurance thru employer-employee relationship
the submission of the certificate of g. Individual income tax return of the
insurance coverage proprietor, partners, stockholders/
vii. Assume full and complete incorporators, as the case may be for
responsibility for all claims and the past 2 years.
liabilities which may arise in h. Proof of possession by the sole
connection with the use of license proprietor, partner or chief executive
viii. Assume joint and solidary officer, as the case may be, of a
liability with the employer for all bachelors degree and 3 years
claims that may arise in connection business experience.
with the implementation of the i. Proof of possession by the sole
contract, including but not limited proprietor, partner or chief executive
to, payment of wages, death and officer, as the case may be, of a
disability compensation and bachelors degree and 3 years
repatriation business experience
ix. Guarantee compliance with the j. List of all officials and persons
applicable labor, social and involved in the recruitment and
maritime legislations of the placement, together with their
Philippines, and the applicable appointment, bio-data and 2 copies of
regulations of the flag state and their passport-sized pictures as well as
international organizations such as their clearances from the NBI and Anti-
the international Maritime Illegal Recruitment Branch of the
Organization (IMO) and the POEA
International Labor Organization k. Copy of the Contract of Lease or proof
x. Assume full and complete of building ownership, indicating the
responsibility for all acts of its office address, providing for an office
officials, employees and space of at least 100 square meters
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l. Proof of publication of notice of the the agency shall comply with its undertaking to deploy 100 land-
application with the names of the based workers or 50 seafarers to its new marker.
proprietor, partners, incorporators or Non-compliance will result in the expiration of the provisional
officers license.
m. Certificate of attendance of owner
and/or chief executive officer in a pre- Renewal of license may be made on or before its expiration. If
application seminar conducted by the made thereafter, 30 days from the expiry thereof, subject to
POEA. payment of fine of 10k.
2.3.3 For POCB-Registered Company If the application for the renewal of license has been timely and
8 POCB-registered companies with sufficiently filed, the existing license shall not expire until the
overseas projects duly accredited by the application shall have been finally determined by the POEA.
POCB should:
a. File an application for license with the Conduct of recruitment for land-based overseas workers:
POEA 8 Can recruit employees only in behalf of foreign
b. Pay a filing fee of P10k and post a principals or projects that are registered and accredited
surety bond of P50k and escrow by the POEA. To do otherwise may result in the
deposit of P200k, upon approval of the suspension or cancellation of license.
application
8 The following documents should be Registration procedure:
attached to the application for license a. Submit to the Philippine Overseas Labor Office (POLO) the
a. Articles of Incorporation ff documents for verification:
b. Certified true copy of its POCB 1. SPA issued by the principal or employer to the
certificate of registration Philippine agency, or recruitment agreement or service
c. Proof of payment of non-refundable agreement
fee of P10k 2. Master employment contract
POCB-registered companies without POCB-accredited 3. Manpower request indicating the position and salary of
overseas projects shall follow the normal requirements for the workers to be hired
obtaining a license or renewal thereof. 4. Valid business license, registration certificate or
equivalent document
Duration of license: b. File with the POEA, an application for registration, with the
a. For overseas land-based employment 4 yrs form the date of supporting documents (nos. 1, 2, and 3)
issuance. The license is valid only in the place specified therein
b. For overseas maritime employment - 4 yrs form the date of Registration is valid for a period of 4 yrs, unless sooner revoked
issuance. The license is valid only in the place specified therein or cancelled by the POEA on any of the ff grounds: (FFEP)
c. For POCB-registered companies - 4 yrs form the date of a. Expiration of the principals business license
issuance and is co-terminus with the validity of the POCB b. Pre-termination of the Agreement, upon written mutual
registration agreement by the parties
c. False documentation or misrepresentation in connection
Provisional license a permit issued to a new recruitment or with the application for registration, and
manning agency for a limited period of 1 yr, within which period, d. Final judgment in disciplinary action against the foreign
principal
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A manning agency for overseas maritime employment can
Verification refers to act performed by a POLOfficer, or any recruit workers only in behalf of foreign principals that are
other officer designated by the Sec of DOLE in the Philippine registered and accredited by the POEA and to vessels that are
embassy or consulate, in reviewing and verifying the recruitment enrolled with the POEA. To do otherwise may result in the
documents of foreign principals, including the employment suspension or cancellation of license.
contracts of Filipino nationals.
A principal may be registered to a maximum of 3 manning
A foreign principal that acts as direct employer may be agencies provided that a minimum wage and compensation
registered to more than one Philippine agency, under the ff package shall be adopted by the principal for all seafarers
conditions: employed through the agencies taking into consideration the
1. A uniform compensation package shall be adopted by the type of the vessel and its operations.
principal and the agency
2. The principal has a verified job order at at least 50 workers; The registration of a principal and/or enrolment of vessel may be
or transferred to another agency, provided that:
3. That the principal must have hired at least 50 workers within a. The transfer does not involve diminution of wages and
a period one yr immediately preceding the registration benefits of the seafarers hired through the previous agency
A principal that is licensed to operate as foreign replacement b. The transferee shall assume full and complete responsibility
agency by its government may be registered to a maximum of 2 for all contractual obligations of the principal to the seafarers
Philippine agencies, provided that under the preceding originally recruited and processed by the former agency.
conditions.
The registration of a foreign placement agency may be Prior to the transfer of registration, the POEA must notify the
transferred to another agency, provided that: previous agency and principal of such application for transfer.
a. The compensation package previously approved by the
POEA shall be maintained; and Only duly licensed manning agencies may file an application for
b. The transferee shall assume full and complete responsibility accreditation of principals and enrolment of ships. In the
for all contractual obligations of the principals to its workers absence of a POLO in the principal place of business of the
originally recruited and processed by the former agency. foreign employers or vessel owner/mngr/operator to verify the
manning documents, accreditation shall be conducted at the
POEA.
Accreditation procedure: Authentication of documents of foreign principals shall be
a. SPA undertaken by any of the ff:
b. Master employment contract a. Appropriate official of the Philippine embassy or consulate,
c. Manpower request or the authorized Philippine foreign representative, in the
d. Valid business license absence of a Philippine mission; or
e. Visa assurance b. Appropriate official of any designated government ministries
or offices of the host country.
The accreditation of a foreign principal, employer or project shall
be valid for 4 yrs, unless sooner revoked or cancelled by the Accreditation procedure:
POEA on the grounds provided for the cancellation or a. File an application with the ff documents:
revocation of a license. 1. Authenticated manning agreement and SPA
2. List of ship and their particulars including IMO numbers
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3. Crew complement of the principal and their Foreign principals/employers who wish to advertise overseas
corresponding wage scales job vacancies may do so only through a POEA-licensed agency
4. valid business license or through the POEA.
5. other documents which the administration may find Documentation of workers:
necessary For new hires (land-based)
The accreditation shall be valid for a period of 4 yrs from the 8 The ff documents shall be submitted to the POEA for
date of issuance, unless sooner revoked by the POEA on the documentation of new hires:
grounds provided therefor. 1. Request for processing, indicating the names,
The expiration of the agencys license merely suspends the positions and salaries of workers using the
accreditation until the renewal of the license prescribed form of the POEA.
Provisional accreditation 90 days 2. Standard employment contract
A principal may be accredited to a maximum of 3 manning 3. Other documents that the POEA may find
agencies, provided that a uniform wage and compensation necessary
package shall be adopted by the principal fort all seafarers An employment or manning agency shall deploy its hired
employed through the agencies taking into consideration the workers/seafarers within 60 days from the date of issuance of
type of vessel and its operations the overseas employment certificate. Failure on the part of the
The accreditation of a principal and/or the enrolment of a vessel recruitment or manning agency to deploy a worker within the
may be transferred to another agency, provided: prescribed period may result in imposition of sanctions ranging
a. Such transfer shall not involve diminution of benefits and from reprimand to cancellation of license.
wages of the seafarers hired through the previous agency If the deployment of the worker/ seafarer does not materialize
b. The transferee agency shall assume full and complete within 30 days from the lapse of the period to deploy, the
responsibility to all contractual obligations of the principal of agency shall report the non-deployment and the reasons
such application for such transfer therefor and apply to the POEA for the cancellation of the
workers processed documents. If the deployment of the
In case of change of vessel or management involving a change worker/seafarer does not materialize due to his fault, the agency
in the principal, the agency of the new principal automatically may charge the worker for actual expenses incurred in
assumes full and complete responsibility over all seafarers connection with his recruitment, duly supported by official
originally recruited and deployed by the previous agent, if the receipts.
seafarers opt to sign an employment contract with the new
principal. Otherwise, the agency shall retrain full responsibility The parties to an overseas employment contract may stipulate
over the contractual obligation of its principal. terms and conditions that are more beneficial to the worker than
the minimum.
The accreditation may be renewed upon request by the agency,
provided that the documents required for initial accreditation are It is a basic right of all workingmen to seek greater benefits not
still valid. only for themselves but for their families as well.
Licensed employment or manning agencies may advertise for
actual job vacancies without prior approval from the POEA, if GR: the repatriation of land-based workers or seafarers and the
covered by manpower requests by registered/accredited foreign transport of their personal belongings shall be the primary
principals and projects. responsibility of the agency which recruited or deployed the
Licensed employment or manning agencies may advertise for worker.
manpower pooling without prior approval from POEA. Exception: if due to the fault of the worker
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Foreigners cannot engage in recruitment and placement
The joint and several liability imposed by law against recruitment The privilege to engage in recruitment and placement or
agencies and foreign employers is meant to assure the workers, whether for local or overseas employment, is available
aggrieved worker of immediate and sufficient payment of what is only to Filipino citizens or to corporations, partnerships or
due to him. entities with at least 75% of the authorized and voting capital
Exceptions: stock owned and controlled by Filipino citizens.
a. When the workers were the ones who persuaded the
recruitment agency to send back abroad despite their Art. 28. Capitalization. All applicants for authority to hire or renewal of
knowledge that the foreign employer might not be able to license to recruit are required to have such substantial capitalization as
pay their wages because of financial difficulties and they determined by the Secretary of Labor.
agreed not to hold the agency responsible therefor.
b. When the workers were recruited by the supposed
Recruitment agency for local employment:
recruitment agency without the latters consent.
8 200k in the case of single proprietorship
8 500k in the case of a corporation
Art. 27. Citizenship requirement. Only Filipino citizens or corporations,
partnerships or entities at least seventy-five percent (75%) of the Recruitment or manning agency for overseas employment:
authorized and voting capital stock of which is owned and controlled by 8 2M for single proprietorship
Filipino citizens shall be permitted to participate in the recruitment and 8 5M for corporations
placement of workers, locally or overseas.
Art. 29. Non-transferability of license or authority. No license or
Persons disqualified from engaging in overseas recruitment: authority shall be used directly or indirectly by any person other than the
1. Travel and sales agencies of airline companies one in whose favor it was issued or at any place other than that stated in
2. Officers or members of the board or any corporation or the license or authority be transferred, conveyed or assigned to any
members of a partnership engaged in the business of a other person or entity. Any transfer of business address, appointment or
travel agency designation of any agent or representative including the establishment
3. Corporations and partnerships, when any of its officers, of additional offices anywhere shall be subject to the prior approval of
board members or partners is also an officer, board the Department of Labor.
member, or partner of a corporation engage in the business
of a travel agency.
4. Persons, partnerships or corporations which have Limitations on the use of license or authority:
derogatory records 1. A license or authority cannot be used directly or indirectly
5. Any official or employee of the DOLE, POEA, OWWA, DFA by any person other than the one in whose favor it was
and other government agencies directly involved in the issued
implementation of RA 8042 and/or their relatives within the 2. It cannot be issued in any place other than that specified in
th
4 civil degree of consanguinity or affinity; and the license or authority
6. Persons, partners, officer, and directors of corporations 3. It cannot be transferred, conveyed or assigned to any
whose license has been previously revoked or cancelled for person or authority
violation of recruitment laws.
Effect of death of a sole proprietor
8 The license may be extended upon request of the heirs
only for the purpose of winding up its business, in order
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to prevent disruption of operations and so as not to 3. Sworn or verified statement by the designating or
prejudice the interest of legitimate heirs appointing person or company assuming full responsibility
A private recruitment and placement agency for local for all acts of the agent or representative done in
employment desiring to transfer ownership of the agency connection with the recruitment and placement of workers
should surrender its license to the issuing regional office of the or seafarers.
DOLE
Change of officers and personnel for overseas employment
Transfer or change of ownership of a single proprietorship shall be registered with the POEA 30 calendar days from the
licensed to engage in overseas employment shall automatically date of such change.
revoke the license.
Art. 30. Registration fees. The Secretary of Labor shall promulgate a
A change in the relationship of the partners in a partnership schedule of fees for the registration of all applicants for license or
duly licensed to engage in overseas employment which authority.
materially interrupts the course of the business or results in the
actual dissolution of the partnership, shall automatically cause Recruitment agency for local employment 5k
the revocation of the license.
Recruitment or manning agency for overseas employment 50k
Recruitment or manning agencies for overseas employment Art. 31. Bonds. All applicants for license or authority shall post such
organized as single proprietorship may convert into a cash and surety bonds as determined by the Secretary of Labor to
corporation for the purpose or upgrading their capabilities to guarantee compliance with prescribed recruitment procedures, rules and
respond adequately to developments in the international labor regulations, and terms and conditions of employment as may be
market and to enable them to better comply with their appropriate.
responsibilities.
Purposes:
The approval of the merger, consolidation or upgrading shall 1. To secure all valid and legal claims arising from a violation
automatically revoke or cancel the license of the single of the conditions of the grant and use of the license,
partnership. accreditation and contracts of employment.
2. Intended to guarantee compliance with the LC and its IRRs
Duly authorized representatives of a private recruitment and relative to the recruitment and placement
placement agency for local employment can engage in
recruitment activities if their names are registered with the Amount of bond for recruitment agency for local employment:
regional office of the DOLE. (prior to the approval of license)
a. Cash bond 25k
Every appointment of agents of a licensed recruitment or b. Surety bond 100k
manning agency for overseas employment shall be subject to The bonds and escrow shall answer for all the valid and legal
the approval or authority by the POEA. Said approval may be claims arising from violations of the conditions for the grant and
obtained by submitting the ff documents: use of license and/or accreditation and contracts of
1. Proposed appointment or SPA employment.
2. Clearance of the proposed representative from the NBI and
the Anti-illegal recruitment branch of the POEA; and
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The bonds and escrow shall likewise guarantee compliance with system in the country where the worker is to be deployed,
the provisions of Philippine laws and all liabilities that the POEA either by law, practice or policy, does not allow the charging
may impose. or collection of placement and recruitment fee.
Appeal bond:
a. Art. 223 Service fees
8 a requirement for the perfection of an appeal. a. For local employment charged against the employer which
8 Intended to insure the payment of monetary award in shall not exceed 20% of the annual salary of the worker.
the event that the judgment is affirmed on appeal b. For overseas employment charged against their principals
b. Art. 31 to cover services rendered in the recruitment,
8 not limited to monetary awards by employees documentation and placement of workers or seafarers. The
8 Against which the POEA can go for violations by the principal shall be responsible for the payment of the ff:
recruiter of the conditions for its license, the provisions 1. Visa fee
of the LC, the rules of the POEA as well as the 2. Airfare
settlement of other liabilities the recruiter may incur. 3. POEA processing fee
8 Intended to answer only for employment-related claims 4. OWWA membership fee
and for violations of labor laws. Therefore, it cannot be
garnished to satisfy a claim against a recruitment The power of the secretary of DOLE to order the suspension of
agency that is not employment-related or does not license carries with it the power to refund such fees as may
pertain to violation of labor laws. have been illegally collected.
Art. 32. Fees to be paid by workers. Any person applying with a The authority given to the Sec of DOLE under this article can be
private fee-charging employment agency for employment assistance exercised only when public interest requires. This can be
shall not be charged any fee until he has obtained employment through justified as an exercise of police power.
its efforts or has actually commenced employment. Such fee shall be
always covered with the appropriate receipt clearly showing the amount Art. 34. Prohibited practices. It shall be unlawful for any individual,
paid. The Secretary of Labor shall promulgate a schedule of allowable entity, licensee, or holder of authority:
fees.
a. To charge or accept, directly or indirectly, any amount greater
Placement fees than that specified in the schedule of allowable fees prescribed
st
a. For local employment not exceed 20% of the workers 1 by the Secretary of Labor, or to make a worker pay any amount
months basic salary. greater than that actually received by him as a loan or advance;
b. For overseas land-based employment an amount b. To furnish or publish any false notice or information or document
equivalent to 1 month salary, except where the prevailing in relation to recruitment or employment;
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c. To give any false notice, testimony, information, document, or o. The acts enumerated in Sec. 6 of the MWOFA of 1995
commit any act of misrepresentation for the purpose of securing constitute illegal recruitment regardless of w/n the offender is a
a license or authority under this Code. licensee of holder of authority.
d. To induce or attempt to induce a worker already employed to p. A mere attempt to induce a worker to quit his job through
quit his employment in order to offer him to another unless the offering him another one constitutes a violation of Art. 34.
transfer is designed to liberate the worker from oppressive terms q. If the purpose of the inducement is to liberate the worker from
and conditions of employment; oppressive terms and conditions of employment, he will not
e. To influence or to attempt to influence any person or entity not incur liability.
to employ any worker who has not applied for employment r. The pari de licto doctrine shall not apply in cases of
through his agency; overcharging allowable fees
f. To engage in the recruitment or placement of workers in jobs s. Alteration of employment contracts without the approval of the
harmful to public health or morality or to the dignity of the Secretary of DOLE or the POEA is prohibited under Article 43 (i)
Republic of the Philippines; of the LC.
g. To obstruct or attempt to obstruct inspection by the Secretary of
Labor or by his duly authorized representatives; The limitation is intended to insure that the employee is not placed in a
h. To fail to file reports on the status of employment, placement disadvantageous position
vacancies, remittance of foreign exchange earnings, separation
from jobs, departures and such other matters or information as
Art. 35. Suspension and/or cancellation of license or authority. The
may be required by the Secretary of Labor.
Minister of Labor shall have the power to suspend or cancel any license
i. To substitute or alter employment contracts approved and
or authority to recruit employees for overseas employment for violation
verified by the Department of Labor from the time of actual
of rules and regulations issued by the Ministry of Labor, the Overseas
signing thereof by the parties up to and including the periods of
Employment Development Board, or for violation of the provisions of this
expiration of the same without the approval of the Secretary of
and other applicable laws, General Orders and Letters of Instructions.
Labor;
j. To become an officer or member of the Board of any corporation
engaged in travel agency or to be engaged directly or indirectly Grounds for suspension or cancellation of license:
in the management of a travel agency; and 1. Recruitment agency for local employment:
k. To withhold or deny travel documents from applicant workers a. Violation of the conditions of license
before departure for monetary or financial considerations other b. Engaging in acts of misrepresentation for the
than those authorized under this Code and its implementing purpose of securing a license or the renewal
rules and regulations. thereof.
l. Art. 34 is confined to persons engaged in recruitment and c. Continuous operation despite due notice that
placement of workers for local employment, the penalty of which the license has expired
is provided in art. 39 of the LC. d. Incurring two suspensions based on final and
m. Acts enumerated constitute illegal recruitment, regardless of executory orders
whether or not the offender is a licensee of holder of authority. e. Engaging in labor-only contracting as defined in
n. With regard to persons with regard to persons engaged in Art. 106 of the LC; etc.
recruitment of workers for overseas employment, the applicable
law is Sec. 6 of the Migrant Workers and Overseas Filipinos Act 2. Recruitment agency for land-based overseas
of 1995. employment:
a. Deploying under-aged workers
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b. Deploying workers to principals not accredited more complainants in a single case shall be imposed the
by the POEA penalty of cancellation of license.
c. Falsifying or altering travel documents of
applicant worker in relation to overseas Chapter III
recruitment activities MISCELLANEOUS PROVISIONS
d. Withholding of workers salaries or remittances
without justifiable reasons or shortchanging of
Art. 36. Regulatory power. The Secretary of Labor shall have the
remittances
power to restrict and regulate the recruitment and placement activities of
e. Failure to comply with the undertaking to
all agencies within the coverage of this Title and is hereby authorized to
provide Pre-Departure Orientation Seminar to
issue orders and promulgate rules and regulations to carry out the
workers; etc
objectives and implement the provisions of this Title.
3. Manning agency for overseas seafarers:
a. Transfer or change of ownership of a single Purpose: to insure the protection of job-seekers from
proprietorship licensed to engage in overseas unscrupulous recruiters.
employment Implicit in this power is the authority to award appropriate relief
b. Falsifying or altering travel documents of to victims of offenses committed by recruitment agencies,
applicant seafarer in relation to recruitment especially the refund or reimbursement of such fees as may
activities have been fraudulently or illegally collected, or such goods or
c. Appointing or designating agents, services imposed and accepted in excess of what is licitly
representatives or employees without prior prescribed.
approval from the POEA
d. Failure to deploy a seafarer within the
prescribed period without valid reason Art. 37. Visitorial Power. The Secretary of Labor or his duly authorized
e. Disregard of orders, notices, and other representatives may, at any time, inspect the premises, books of
processes issued by the POEA accounts and records of any person or entity covered by this Title,
require it to submit reports regularly on prescribed forms, and act on
Penalties imposed, as the case may be: violation of any provisions of this Title.
1. Reprimand
2. Suspension of license (2 mos to 6 mos) Usually conducted:
3. Suspension of license (6mos and 1 day to 1 yr) a. Before issuance of license
4. Cancellation of license b. In case of transfer of office
c. Upon receipt of complaint for violation of existing RRs
The penalty shall carry the accessory penalty of refund of the Violation: appropriate sanction or denial of application for
fee charged or collected from the worker, in case of non- renewal of license
deployment. Inspectors must present to the agency their Authority to Inspect
In addition or in lieu of the penalty of suspension of license, the stating in detail the purpose and subject of inspection.
POEA may impose the penalty of fine which shall be computed
at P10k for every month of suspension
A manning agency found guilty of committing an offense Art. 38. Illegal recruitment.
regardless of the number or nature of charges, against 5 or
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a. Any recruitment activities, including the prohibited practices It is enough that the recruiter gives the impression of his ability
enumerated under Article 34 of this Code, to be undertaken to enlist workers for job placement abroad.
by non-licensees or non-holders of authority, shall be deemed
illegal and punishable under Article 39 of this Code. The There is illegal recruitment:
Department of Labor and Employment or any law a. When a person who is not a holder of license or authority
enforcement officer may initiate complaints under this Article. engages in recruitment activities
b. When a person, w/n a holder of a license or authority,
b. Illegal recruitment when committed by a syndicate or in large commits any of the prohibited practices enumerated in
scale shall be considered an offense involving economic Article 34 of the LC or those enumerated in Section 6 of the
sabotage and shall be penalized in accordance with Article 39 Migrant Workers Act of 1995, in case of overseas
hereof. employment.
c. The Secretary of Labor and Employment or his duly authorized Illegal recruitment, if committed by a syndicate or in a large
representatives shall have the power to cause the arrest and scale, is considered an offense involving economic sabotage,
detention of such non-licensee or non-holder of authority if hence, a higher penalty is imposed.
after investigation it is determined that his activities constitute
a danger to national security and public order or will lead to A person who violates Art. 13 (b) and Art. 34 of the LC can be
further exploitation of job-seekers. The Secretary shall order charged and convicted separately of illegal recruitment and
the search of the office or premises and seizure of estafa because the former is malum probihitum where criminal
documents, paraphernalia, properties and other implements intent is not necessary for conviction and the latter is malum in
used in illegal recruitment activities and the closure of se where criminal intent of the accused is necessary for
companies, establishments and entities found to be engaged conviction.
in the recruitment of workers for overseas employment,
without having been licensed or authorized to do so. Prescription of action:
(Declared unconstitutional in Salazar v. Achacoso) a. Art. 290 of the LC (local employment)- 3 yrs
b. Migrant 5 yrs, except those involving economic sabotage
Recruitment activities refer to any act of canvassing, which prescribe in 20 yrs
enlisting, contracting, transporting, utilizing, hiring or procuring
workers. It includes referrals, contract services, promising or The SC, in declaring Art. 38 (c) unconstitutional, held that under
advertising for employment, locally or abroad, whether for profit Section 2, Art III of the 1987 Constitution, only judges, and no
or not. other, can issue warrants of arrest and search. Not being a
judge, the Secretary of DOLE cannot issue search warrants or
warrants of arrest.
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persons, the officers having control, management or direction of
the business shall be liable.
Title II
Art. 39. Penalties. EMPLOYMENT OF NON-RESIDENT ALIENS
a. The penalty of life imprisonment and a fine of One Hundred Art. 40. Employment permit of non-resident aliens. Any alien seeking
Thousand Pesos (P1,000,000.00) shall be imposed if illegal admission to the Philippines for employment purposes and any domestic
recruitment constitutes economic sabotage as defined herein; or foreign employer who desires to engage an alien for employment in
b. Any licensee or holder of authority found violating or causing the Philippines shall obtain an employment permit from the Department
another to violate any provision of this Title or its of Labor.
implementing rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of not less than The employment permit may be issued to a non-resident alien or to the
two years nor more than five years or a fine of not less than applicant employer after a determination of the non-availability of a
P10,000 nor more than P50,000, or both such imprisonment person in the Philippines who is competent, able and willing at the time
and fine, at the discretion of the court; of application to perform the services for which the alien is desired.
c. Any person who is neither a licensee nor a holder of authority
under this Title found violating any provision thereof or its For an enterprise registered in preferred areas of investments, said
implementing rules and regulations shall, upon conviction employment permit may be issued upon recommendation of the
thereof, suffer the penalty of imprisonment of not less than government agency charged with the supervision of said registered
four years nor more than eight years or a fine of not less than enterprise.
P20,000 nor more than P100,000 or both such imprisonment
and fine, at the discretion of the court;
Purpose: intended to regulate the employment on non-residents
d. If the offender is a corporation, partnership, association or
so as not to displace Filipinos from jobs that they are capable of
entity, the penalty shall be imposed upon the officer or officers
doing.
of the corporation, partnership, association or entity
responsible for violation; and if such officer is an alien, he
All non-resident nationals who intend to engage in gainful
shall, in addition to the penalties herein prescribed, be
employment in the Philippines are required to obtain an Alien
deported without further proceedings;
Employment Permit.
e. In every case, conviction shall cause and carry the automatic
revocation of the license or authority and all the permits and
privileges granted to such person or entity under this Title, Persons exempted from securing said permit:
and the forfeiture of the cash and surety bonds in favor of the
Overseas Employment Development Board or the National 1. Members of the diplomatic services and foreign government
Seamen Board, as the case may be, both of which are officials accredited by the Philippine government;
authorized to use the same exclusively to promote their 2. Officers and staff of international organizations of which the
objectives. Philippine government is cooperating member, and their
legitimate spouses desiring to work in the Philippines;
3. Foreign nationals elected as members of the Governing Board
The persons criminally liable for illegal recruitment are the who do not occupy any other position, but have only voting
principals, accomplices and accessories. In case of juridical rights in the corporation
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4. All foreign nationals granted exemption by special laws and all 2. Misrepresentation of the facts in the application
other laws that may be promulgated by the Congress; 3. Submission of falsified or tampered documents
5. Owners and representatives of foreign principals, whose 4. Meritorious objection or information against the
companies are accredited by the Philippine Overseas employment of the foreign national as determined by
Employment Administration (POEA), who come to the the regional director
Philippines for a limited period solely for the purpose of 5. Foreign national has a derogatory record; and
interviewing Filipino applicants for employment abroad; 6. Employer terminated the employment of the foreign
6. Foreign nationals who come to the Philippines to teach, present national.
and/or conduct research studies in universities and colleges as Petition for cancellation of AEP shall be resolved within 30
visiting, exchange or adjunct professors under formal calendar days from receipt thereof.
agreements between the universities or colleges in the
Philippines and foreign universities or colleges; or between the Remedies in case of suspension, cancellation or revocation of
Philippine government and foreign government; provided that AEP:
exemption is on a reciprocal basis. a. The aggrieved party may file a motion for recon and/or
7. Resident foreign nationals. appeal within 7 calendar days after receipt of the
suspension/cancellation/revocation order, with the regional
director who shall resolve the same within 10 calendar days
A foreign national who intends to engage in gainful employment from receipt thereof.
in the Philippines should file an application for Alien If the motion for recon is filed after the period of 7
Employment Permit (AEP) with the Regional Office of the DOLE calendar days but not later than 10 calendar days from
having jurisdiction over the intended place of work. receipt of denial, it shall be treated as an appeal
An application for renewal of such permit shall be filed on or b. Such order may also be appealed to the Sec of DOLE, in
before its expiration. Application of foreign nationals with expired which case, it should be filed within 10 calendar days from
AEP shall be considered as new application. its receipt. Decision rendered shall be final and
The AEP shall be valid for a period of 1 yr, unless the unappealable.
employment contract, consultancy services, or other modes of
engagement provides otherwise, which in no case shall exceed Foreign nationals found working without, or with an expired AEP
5 yrs. may be fined 10k for every year of fraction thereof
Grounds for suspension of AEP: Permanent resident aliens who are employed in the Philippines
1. The continued stay of the foreign national may result in are obliged to secure an Alien Employment Registration
damage to the interest of the industry or the country. Certificate (AERC). The AERC may be obtained by filing with
2. The employment of the foreign national is suspended by the regional office of DOLE an application with the necessary
the employer or by order of the court. supporting documents.
Petition for suspension of AEP shall be resolved within 30
calendar days from receipt thereof. Art. 41. Prohibition against transfer of employment.
Cancellation of AEP: a. After the issuance of an employment permit, the alien shall
1. Non-compliance with any of the requirements of not transfer to another job or change his employer without
conditions of the AEP
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prior approval of the Secretary of Labor. quality Filipino middle-level manpower responsive to the
Philippine development goals and priorities.
b. Any non-resident alien who shall take up employment in TECHNICAL EDUCATION refers to the education process designed
violation of the provision of this Title and its implementing at post-secondary and lower tertiary level officially recognized as non-
rules and regulations shall be punished in accordance with degree programs aimed at preparing technicians, para-professionals
the provisions of Articles 289 and 290 of the Labor Code. and other categories of middle-level workers by providing them with a
broad range of general education, theoretical, scientific and
In addition, the alien worker shall be subject to deportation technological studies, and related job skills training.
after service of his sentence. SKILLS DEVELOPMENT is the process through which learners and
workers are systematically provided with learning opportunities to
Sanctions for Violation: acquire or upgrade, or both, their ability, knowledge and behavior
a. Cancellation of AEP pattern required as qualifications for a job or range of jobs in a given
b. Fine of not less than 1k nor more than 10k, or occupational area.
imprisonment of not less than 3 mos nor more than 3 COMPOSITION OF TESDA BOARD
yrs or both such fine and imprisonment at the discretion 1. Secretary of Labor and Employment Chairperson
of the court, as provided in Art. 288 of the LC. 2. Secretary of Education Co-chairperson
3. Secretary of trade and Industry Co- Chairperson
4. Secretary of Agriculture Member
Art. 42. Submission of list. Any employer employing non-resident
5. Secretary of Interior and Local Government - Member
foreign nationals on the effective date of this Code shall submit a list of
6. Director-General of the TESDA secretariat Member
such nationals to the Secretary of Labor within thirty (30) days after such
7. 2 representatives, from the employer/industry organization, one
date indicating their names, citizenship, foreign and local addresses,
of whom shall be a woman
nature of employment and status of stay in the country. The Secretary of
8. 3 representatives from the labor sector, one of whom shall be a
Labor shall then determine if they are entitled to an employment permit.
woman
The list will enable the secretary of DOLE to determine if the TESDA ACT OF 1994 ( R.A NO. 7796)
foreign nationals listed are still entitled to an AEP. DECLARATION OF POLICY
To provide relevant, accessible, high quality and efficient
technical education and skills development in support of the
development of high quality Filipino middle-level manpower
ART 43-56 SUPERSEDED BY R.A NO. 7796 OTHERWISE KNOWN responsive to and in accordance with Philippine development
AS THE TECHNICAL EDUCATION AND SKILLS DEVELOPMENT goals and priorities.
ACT OF 1994 The state shall encourage active participation of various
TECHNICAL EDUCATION AND SKILLS DEVELOPMENT concerned sectors, particularly private enterprises being direct
TESDA Act aims to promote and strengthen the quality of participants in and immediate beneficiaries of a trained and
ethical education and skills development programs in order to skilled workforce, in providing technical education and skills
attain international competitiveness and meet the changing development opportunities.
demands for quality middle-level manpower.
In pursuance of the declared policy of the state to provide GOALS AND OBJECTIVES
relevant, accessible, high quality and efficient technical
education and skills development in order to build up high
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To promote and strengthen the quality of technical education alone or in association with another, can embark on a business
and skills development programs to attain international activity. This includes industrial, agricultural, or agro-industrial
competitiveness. establishments engaged in the production, manufacturing,
Focus technical education and skills development on meeting processing, repacking or assembly of goods including service-
the changing demands for quality middle-level manpower. oriented enterprises.
Encourage critical and creative thinking by disseminating the TRAINERS persons who direct the practice of skills towards
scientific and technical knowledge base of middle-level immediate improvement in some task
manpower development programs TRAINORS/TRAINERS persons who provide training to trainers
Recognize and encourage the complimentary roles of public and aimed at developing the latters behavior patterns required for
private institutions in technical education and skills specific jobs, tasks, occupations or group of related occupations.
development and training systems. TRAINEES Persons who are participants in a vocational,
Inculcate desirable values through the development of moral administrative or technical training program for the purpose of
character with emphasis on the work ethic, self-discipline, self- acquiring and developing job-related skills
reliance and nationalism. APPRENTICESHIP training within employment with compulsory
SKILL The acquired and practiced ability to carry out a task or job related theoretical instructions involving a contract between an
SKILLS DEVELOPMENT the process through which learners and apprentice and an employer on an approved apprenticeable
workers are systematically provided with learning opportunities to occupation.
acquire or upgrade, or both, their ability, knowledge and behavior APPRENTICE a person undergoing training for an approved
pattern required as qualifications for a job or range of jobs in a given apprenticeable occupation during an established period assured by
occupational area. an apprenticeship agreement.
TECHNICAL EDUCATION the education process designed at APPRENTICESHIP AGREEMENT a contract wherein a
post-secondary and lower tertiary levels, officially recognized as prospective employer binds himself to train the apprentice who in
non-degree programs aimed at preparing technicians, para- turn accepts
professionals and other categories of middle-level workers by
providing them with a broad range of general education, theoretical
studies, and related job skills training. TITLE II
TRADE any group of interrelated jobs or any occupation which is TRAINING AND EMPLOYMENT OF SPECIAL WORKERS
traditionally or officially recognized as craft or artisan in nature APPRENTICES
requiring specific qualifications that can be acquired through work
and/or training. ART. 57 STATEMENT OF OBJECTIVES
MIDDLE-LEVEL MANPOWER refers to those: 1. To help meet the demand of the economy for trained
1. Who have acquired practical skills and knowledge through manpower
formal or non-formal education and training equivalent to at 2. To establish a national apprenticeship program through the
least a secondary education and training equivalent to at participation of employers, workers and government and
least a secondary education but preferably a post- non-government agencies
secondary education with a corresponding degree or 3. To establish apprenticeship standards for the protection of
diploma apprentices
2. Skilled workers who have become highly competent in their
trade or craft as attested by industry SALIENT FEATURES OF THE APPRENTICESHIP LAW
PRIVATE ENTERPRISES an economic system under which
property of all kinds can be privately owned and in which individuals,
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1. It liberalizes the application of training principles to facilitate the c) Possess the ability to comprehend and follow oral and
use of the training method for development of manpower in written instructions
many other occupations aside from the skilled trades. Trade and industry associations may recommend to the
2. It lowers the minimum qualifying age for apprenticeship to 14 Secretary of Labor appropriate educational requirements
instead of 16 as prescribed in the old law for different occupations
3. It eliminates the unrealistic requirement that a prospective EDUCATIONAL QUALIFICATION
apprentice should be a high school graduate It is no longer required that the applicant for apprenticeship
4. Unlike the old law which required that training should be should be a high schoolgraduate.
undertaken in the premises of the employer alone, the Labor All that it needed is possession of the ability to comprehend and
Code gives an employer the option to conduct the training in its follow oral and written instructions.
premises, in a Department of Labor and Employment training Some occupations may require a certain degree of education
center or other public training institution, or a combination of Trade and industry associations may recommend to the
both Secretary of Labor and Employment the appropriate educational
5. Associations and civic groups are now allowed to organize or qualification.
sponsor apprenticeship programs If approved, such qualifications shall become the educational
6. The limitation imposed by P.D. No. 173 on the number of requirement for such particular occupation.
apprentices whose compulsory employment and training may The employer can waive the said educational qualification in
be required during the emergency situations has been favor of an applicant who demonstrates exceptional ability. In
eliminated. such a situation, a certification explaining briefly the ground for
such waiver signed by the person in charge of the program shall
ART. 58 DEFINITION OF TERMS be attached to the apprenticeship agreement.
Apprenticeship means practical training within employment PHYSICAL FITNESS
with compulsory related theoretical instructions involving a the applicant for apprenticeship should be physically fit for the
contract between an apprentice and an employer on an occupation in which he desires to be trained.
approved apprenticeable occupation.
Physical defect should not be a hindrance except when it
Apprentice is a worker who is covered by a written
impedes the effective performance of the apprentice.
apprenticeship agreement with an individual employer or any
PHYSICAL EXAMINATION
of the entities recognized under this chapter.
Physical examination of applicants for apprenticeship is free of
An apprenticaeble occupation means any trade, form of
charge at the Department of Health or any government hospital.
employment or occupation which requires more than three (3)
months of practical training on the job supplemented by related All entities with an apprenticeship program may elect to assume
theoretical instruction the responsibility for physical examination provided its facilities
Apprenticeship agreement is an employment contract are adequate and all expenses are borne exclusively by it.
wherein the employer binds himself to train the apprentice who
in turn accepts the terms of the training
PREVIOUS TRAINING
ART. 59 QUALIFICATIONS OF APPRENTICE A prospective apprentice who has completed or attended a
a) Be at least (14) years of age. vocational course in a duly recognized trade or vocational
b) Possess vocational aptitude and capacity for appropriate school or training center who has had previous experience in
tests the trade or occupation in which he decides to apprenticed shall
be given due credit.
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Both practical and theoretical knowledge shall be evaluated and security or particular requirements of economic development so
the credit shall appear in the apprenticeship agreement. demands
Such credit shall be expressed in terms of hours. (b) where foreign technicians are utilized by private companies
in apprenticeship trades
ART. 60 EMPLOYMENT OF APPRENTICES
Only employers in the highly technical industries may ARTICLE 71. Deductibility of Training Costs
employ apprentices and only in apprenticeable occupations -1/2 deduction for taxable income of the value of labor training expenses
approved by the Minister of Labor and Employment. -Purpose: to encourage the organization of apprenticeship programs
and induce an employer to pay the minimum wage
REQUISITES: -Requisites of availment:
a) The employer should be engaged in a business that is (a) should be recognized by the Department of Labor and
considered a highly technical industry. Employment
b) The job to which the apprentice will work on should be classified (b) apprentices should be paid minimum wage
as an apprenticeable occupation. (c) the deduction should not exceed 10% of direct labor wage
(d) should be operational during the taxable year as certified by
Article 66. Appeal to the Secretary of Labor the Apprenticeship Division.
-the decision of the authorized agency of the Dept. of Labor may be
appealed to the Secretary of Labor within 5days from receipt of decision ARTICLE 72. Apprenticeship Without compensation
-The decision of the Secretary of Labor is final and executory (a) those who undergo apprenticeship for the purposes of
-However, the aggrieved party can still elevate the matter to the complying with academic requirements for graduation
appropriate court through a special civil action for certiorari (b) those who undergo apprenticeship for the purposes of
complying with government requirements for board
ARTICLE 67. Exhaustion of Administrative Rules examinations
-controversies and disputes arising out of apprenticeship agreement
should be first threshed out with the plant apprenticeship committee ARTICLE 73. Learners Defined
before filing an action -those who are hired as trainees in semi-skilled and other industrial
occupations which are non-apprenticeable and which may be learned
ARTICLE 68. Aptitude Testing Applicants through practical training on-the-job
-to qualify for apprenticeship, one should possess vocational aptitude -must not exceed 3 months
tests -employer must have Leadership Program duly approved by TESDA
-need not be supplemented by theoretical instructions
ARTICLE 69. Responsibility for Theoretical Instruction
-ratio: 100hours of instructions for every 2,000hours of practical or OJT ARTICLE 74. When Learners May Be hired
-Conditions:
ARTICLE 70. Organization of Apprenticeship Program; Exemptions (a) the job is semi-skilled and non-apprenticeable and can be
-General Rule: the organization of apprenticeship program shall be learned in a practical way within a period of not more than 3 months
primarily a voluntary undertaking of employers (b) there are no available experienced workers
-Exceptions: (c) the employment of learners is necessary to prevent
(a) when there is a critical shortage of trained manpower in curtailment of employment opportunities
certain trades, occupations, jobs, or employment levels and national (d) their employment does not create unfair competition in terms
of labor costs or impair working standards
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and workers who are paid by results as determined by the Secretary of
-Age Requirement: Labor in appropriate regulations.
- below 15 cannot be employed as a learner As used herein, "managerial employees" refer to those whose primary
- below 18 can be employed only in non-hazardous, safe duty consists of the management of the establishment in which they are
occupations employed or of a department or subdivision thereof, and to other officers
or members of the managerial staff.
ARTICLE 75. Leadership Agreement "Field personnel" shall refer to non-agricultural employees who regularly
(a) names and addresses of the learners perform their duties away from the principal place of business or branch
(b) duration of the learnership period which shall not office of the employer and whose actual hours of work in the field cannot
exceed 3months be determined with reasonable certainty.
(c) wage salary rate is mot less than 75% of the minimum Applies to ALL EMPLOYEES, whether for profit or not, except:
wage o Government Employees
(d) to employ learners as regular employees if they so o Managerial Employees
desire upon completion of learnership o Officer and members of the managerial staff
o Field Personnel
-if he training is terminated after the first 2 months, before the stipulated o Members of the family of the employer who are dependent on
period through no fault of the learner, the learner shall be deemed a him for support
regular employee o Domestic Helpers
-Learnership agreement- contract between the learner and the o Persons in the personal service of another
employee o Workers who are paid by results
-must be in writing
-signed by the learner 1. Government Employees
-signed by the employee or his duly authorized representative a. Refer to those employed by the National Government or any of
-if a learner is a minor, should bear the conformity of his parent its political subdivisions; including those employed in GOCCs
or guardian with SPECIAL CHARTERS, not under the Corporation Law
b. They are not covered by the Labor Code, but by the Civil
ARTICLE 76. Learners in Piecework Service Law or the Administrative Code, among other special
-Learners in piecework or incentive-rate jobs shall be paid in full for the laws
work done, and not 75% of the applicable minimum wage
2. Managerial Employees must meet ALL THE FOLLOWING
ARTICLE 77. Penalty Clause conditions to be considered:
-criminal liability punishable under ART. 288 of the Labor Code a. Primary duty consists in the management of the establishment
or in the management of a department or subdivision thereof;
Title I: Working Conditions and Rest periods b. He directs the work of TWO OR MORE employees therein;
Chapter I: Hours of Work c. Has authority to hire or fire other employees of lower rank, or
his recommendations as to hiring, firing, promoting and other
Art. 82. Coverage. The provisions of this Title shall apply to employees personnel movements are given weight.
in all establishments and undertakings whether for profit or not, but not 3. Officers or members of the managerial Staff
to government employees, managerial employees, field personnel, a. Must perform the following duties and responsibilities to be
members of the family of the employer who are dependent on him for considered such:
support, domestic helpers, persons in the personal service of another,
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i. Primary duty consist in the performance of work directly 6. Domestic Helpers
related to management policies of their employer; a. Any person whether male or female, who renders service in
ii. Exercise discretion and independent judgment; and about the employers home on an activity which are usually
iii. Assisting a proprietor or a managerial employee whose necessary or desirable for the maintenance and enjoyment of
primary duty consists in the management of the the employers family.
establishment or in the management of a department or b. Family drivers, cooks, gardeners or nursemaid.
subdivision thereof; or they execute UNDER GENERAL
SUPERVISION, work along specialized or technical lines 7. Persons in the personal service of another
requiring special training, experience or knowledge; or they a. Are those who minister to the personal comfort, convenience or
execute under general supervision special assignments safety of the employer as well as the members of the
and tasks; and employers household.
iv. Do not devote more than 20% of their hours worked in a b. Personal bodyguards, private nurses
workweek to activities directly and closely related to the
performance of the work described above. (in other words, 8. Workers paid by results
they dont perform work reserved for managerial a. Those who are paid on piecework, takay, pakiao or task basis.
employees more than 20% of the time) Art. 83. Normal hours of work. The normal hours of work of any
b. Supervisory employees are so exempted, if they perform employee shall not exceed eight (8) hours a day.
functions that qualify them as members or officers of a Health personnel in cities and municipalities with a population of at least
managerial staff, like Construction/Project engineer and Chief one million (1,000,000) or in hospitals and clinics with a bed capacity of
Patron of a vessel. at least one hundred (100) shall hold regular office hours for eight (8)
hours a day, for five (5) days a week, exclusive of time for meals, except
4. Field Personnel where the exigencies of the service require that such personnel work for
a. Are exempted from coverage, if: six (6) days or forty-eight (48) hours, in which case, they shall be entitled
i. They regularly perform their duties away from the principal to an additional compensation of at least thirty percent (30%) of their
place of business of the employer; regular wage for work on the sixth day. For purposes of this Article,
ii. Their actual hours of work cannot be determined with "health personnel" shall include resident physicians, nurses, nutritionists,
reasonable certainty dietitians, pharmacists, social workers, laboratory technicians,
1. How to determine: Whether or not employees time paramedical technicians, psychologists, midwives, attendants and all
and performance is constantly supervised by the other hospital or clinic personnel.
employer. Exemption does not apply if constantly so 1. Normal Hours of Work
supervised. a. Sets the maximum hours for work under NORMAL
b. Fishermen ARE NOT field personnel they are under effective CONDITIONS. Employer is free to adopt less than this
control and supervision of the employer through the vessels prescribed maximum.
patron or master. b. 8 hours is maximum, which may be staggered so long as it falls
within a 24-hour period. Work in excess of this maximum
5. Members of the family of the employer who are dependent on becomes OVERTIME WORK.
him for support
a. Refer to: Husband and wife, parents and children, other 2. When May An Employee be Compelled to Render Overtime
ascendants and descendants, brothers and sisters, whether full Work?
or half-blood. a. Only under these following emergency situations:
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i. When the country is at war or when any other local or (a) all time during which an employee is required to be on duty or to be
national emergency has been declared; at a prescribed workplace; and
ii. When overtime work is necessary to prevent loss of life or (b) all time during which an employee is suffered or permitted to work.
property or in case of imminent danger to public safety Rest periods of short duration during working hours shall be counted as
due to an actual or impending emergency in the locality hours worked.
caused by serious accidents, fire, flood, typhoon, 1. Principles in Determining Hours Worked
earthquake, epidemic or other disaster or some other a. All Hours which the employee is required to give his employer
cause of similar nature; hours worked, regardless of whether or not such hours are
iii. When there is urgent work to be performed on machines, spent in productive labor or involve physical or mental exertion.
installations or equipment, in order to avoid serious loss or i. Engaged to WAIT the time spent by an employee
damage to the employer or some other cause of similar waiting is considered HOURS WORKED if he was
nature; engaged to wait or waiting is an integral part of his work.
iv. When overtime work is necessary to prevent loss or Example: Company driver playing chess while waiting for
damage to perishable goods; and his boss.
v. Where the completion or continuation of the work started ii. Waiting to be ENGAGED Not considered working since
th
before the 8 hour is necessary to prevent serious his is not yet controlled by the employer because
obstruction or prejudice to the business or operations of employee is yet to be engaged. Employee can still use
the employer. time waiting for his personal purposes.
iii. On CALL TIME An employee who is required to remain
3. Compressed Workweek on call in the employers premises or so close thereto that
a. Resorted to by the employer to prevent serious losses due to he cannot use the time for his own purpose is considered
cause beyond his control. To be an exception to the 8-hour-a- as working while on call. An employee NOT REQUIRED
day requirement, the workers must AGREE to the temporary TO LEAVE WORD ON WHERE HE MAY BE REACHED is
change of work schedule and they do not suffer any loss of not working while on call.
overtime pay, fringe benefits or their weekly or monthly take- iv. ASSEMBLY TIME A requirement by some employers
home pay. for their employees to assemble at an area prior to the
b. An alternative arrangement where the regular workweek is start of their work. Upon consideration of this as HOURS
reduced to less than 6 days but the total number of normal WORKED, it shall depend on whether or not the worker is
hours per week remains at 48 hours. subject to the control of the employer during the entire
c. Conditions of a VALID CWW Scheme: period. IF workers are NOT SUBJECT TO EMPLOYERS
i. It is expressly and voluntarily supported by majority of the CONTROL during the period, said assembly period is
employees affected; NOT CONSIDERED HOURS WORKED.
ii. If work is hazardous, a certification is needed from an v. TRAVEL TIME General Rule: NOT CONSIDERED
accredited safety organization or the firms safety HOURS WORKED. However, if the employer requires the
committee that work beyond 8 hours is within the limits or employee to deviate from his normal home-to-work/work-
levels of exposure set by DOLEs occupational safety and to-home travel, as for instance, when an employee is
health standards asked to deliver or pick-up a message from a customer,
iii. The DOLE is duly notified. the time spent for such travel is considered as hours
worked.
Art. 84. Hours worked. Hours worked shall include
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vi. ATTENDANCE AT LECTURES, MEETINGS, TRAINING Five (5) to twenty (20) minutes = hours worked
PROGRAMS Not considered as hours worked if ALL OF o Reason - time spent is too short for the employee to
THE FOLLOWING conditions are present: utilize it effectively and gainfully for his own purposes
1. Attendance is voluntary; More than twenty (20) minutes = not hours worked
2. Attendance is outside of the employees regular o Especially if employee is completely relieved of his
working hours; and duties such that he can rest completely
3. The employee does not perform any productive work An employee need not leave the premises of the workplace in
during such attendance. order that his rest period shall not be counted as hours worked
vii. SEMESTRAL BREAK CONSIDERED HOURS
WORKED if teacher cannot use the break gainfully and 3. Applicability to Seamen
effectively for their own interest. No need to set up for seamen a criterion different from that
applied to laborers on land, for the only thing that needs to be
b. If the work performed was necessary or it benefitted the done is to determine the meaning of the term 'working place.'
employer, or the employee could not abandon his work at the Thus, a laborer need not leave the premises of the factory, shop
end of his normal working hours because he had no or boat in order that his rest period shall not be counted, it being
replacement, all time spent for such work shall be considered enough that he 'cease to work', may rest completely and leave
as hours worked, if the work was done with the knowledge of or may leave at will the spot where he actually stays while
his employer or immediate supervisor. working, to go somewhere else, whether within or outside the
premises of the said factory, shop or boat. (Luzon Stevedoring
c.
The time during which an employee is inactive by reason of Co. Inc. vs. Luzon Marine Department Union)
interruptions in his work beyond control shall be considered as Criterion for determining whether or not seamen are entitled to
hours worked if the imminence of the resumption of work overtime compensation
requires the employees presence at the place of work or if the o Whether they actually rendered service in excess of
interval is too brief to be utilized effectively and gainfully in the eight (8) hours a day
employees own interest.
POWER INTERRUPTION 4. Applicability to Health Personnel
Not exceeding twenty (20) minutes = hours worked Principles also applicable to health personnel
Reason - imminence of the resumption of work requires the
employee's presence at the place of work and the time is too Art. 85. Meal periods. Subject to such regulations as the Secretary of
short for the employees to utilize it effectively and gainfully for Labor may prescribe, it shall be the duty of every employer to give his
his own interest employees not less than sixty (60) minutes time-off for their regular
Exceeding Twenty (20) minutes not hours worked if: meals.
a. Employees can leave their workplace or go elsewhere
within or without the work premises; 1. Duration of Meal Period
b. Employees can use the time effectively for their own General rule at least 1 hour time-off for regular meals
interest Cases where meal period may be at least 20 minute:
In either case, the employer can extend the working hours a. Work is non-manual in nature or does not involve strenuous
beyond the regular schedule to compensate the loss of physical exertion
productive man-hours without being liable for overtime pay b. Establishment regularly operates not less than 16 hours a
day
2. Rest Period
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c. Where actual or impending emergencies or there is urgent
work to be performed on machineries, equipment or 3. Coffee Break
installation to avoid serious loss which the employer would 5 20 minutes compensable working time
otherwise suffer
d. Work is necessary to prevent serious loss of perishable Art. 86. Night shift differential. Every employee shall be paid a night
goods shift differential of not less than ten percent (10%) of his regular wage
for each hour of work performed between ten oclock in the evening and
Waiver of overtime pay six oclock in the morning.
General rule right to overtime pay as a result of a
compensable shorter meal period under existing laws 1. Night Shift Differential
Conditions for exception: Premium given to an employee for working between 10:00 pm
a. Employees voluntarily agree in writing to a shortened meal and 6:00 am
period and willing to waive the overtime pay
b. No diminution in the salary and other fringe benefits
c. Work of the employees does not involve strenuous physical 2. Reason for the Law
exertion and they are provided with adequate coffee breaks Hygienic, medical, moral, cultural and socio-biologic reasons are
in the morning and afternoon in accord that night work has many inconveniences and when
d. The value of the benefits derived by the employees for the there is no alternative but to perform it
proposed work arrangement is equal to or commensurate
with the compensation due them 3. Distinction Between Overtime Pay and Night Shift Differential
e. Overtime pay will become due and demandable if they are Night shift differential - additional compensation given to an
permitted or made to work beyond 4:30 pm employee for working between the hours of 10:00 pm and 6:00
f. Effectivity shall be of temporary duration as determined by am
the Secretary of Labor and Employment Overtime pay extra compensation given to an employee for
working excess of 8 hours in a day
2. Compensability of Meal Period
20 minutes compensable; part of working time 4. Employees Not Entitled to Night Shift Differential
1 hour or more not part of working time a. Government employees including those employed in
o Except if employee is not completely relieved of his government-owned or controlled corporations with special
duties during the 1-hour period charters
b. Managerial employees
PANAM vs. Pan American Employees Association (1 SCRA 527) c. Officers and members of a managerial staff
d. Field personnel and other employees whose time and
Facts: During the 1-hour meal period the mechanics were required to performance is unsupervised by the employer
stand by for emergency work. If they happened not to be available when e. Employees of retail and service establishment regularly
called, they were reprimanded by the leadman. employing not more than 5 workers
ISSUE: Should the one-hour meal period be considered as hours f. Domestic helpers
worked? g. Persons in the personal service of another
HELD: Yes, it must be considered as hours worked and compensable. h. Workers who are engaged on task or contract basis, or those
RATIO: The mechanics could not rest completely as they had to be paid a fixed amount for performing work irrespective of the time
ready on call consumed in the performance thereof
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An employee with a daily wage of P145.00 who works for 10 Overtime Rate for Two (2) Hours P47.12 x 2 hours +
hours on a special day or rest day will receive P249.75, 30%** =
computed as follows: P122.51
Special Day/Rest Day Rate P145.00 + 30% premium pay* Total Pay P377.00 + P122.51 =
= P188.50 P499.51
Hourly Rate P188.50 8 hours = P23.56 *30% = 0.3 x (P145.00 x 2)
Overtime Rate for 2 Hours P23.56 x 2 hours + 30%** = **30% = 0.3 x (P47.12 x 2)
P61.25
Total Pay P188.50 + P61.25 = P249.75
*30% premium pay = P145.00 x 0.30 Art. 88. Undertime not offset by overtime. Undertime work on any
**30% = 0.30 x (23.56 x 2) particular day shall not be offset by overtime work on any other day.
Permission given to the employee to go on leave on some other day of
REGULAR HOLIDAY the week shall not exempt the employer from paying the additional
Rate for the first 8 hours on such holiday PLUS at least 30% compensation required in this Chapter.
thereof
Illustration: 1. Prohibition Against Offsetting
An employee with a daily wage of P145.00 who works for 10 The obligation to pay overtime compensation is mandatory
hours on May 1 (Labor Day) will receive P384.25, computed as Under offsetting, the employee is made to pay twice for his
follows: undertime because his work is reduced to that extent while he
Regular Holiday Rate P145.00 x 200% = P290.00 was made to pay for it with work beyond the regular working
Hourly Rate P290.00 8 hours = P36.25 hours
Overtime Rate for Hours P36.25 x 2 hours + 30%* = Proper method deduct the undertime from the accrued leave
P94.25 but pay the overtime to which the employee is entitled
Total Pay P290.00 + P94.25 = P384.25
*30% = 0.30 x (36.25 x 2)
Art. 89. Emergency overtime work. Any employee may be required by
REGULAR HOLIDAY the employer to perform overtime work in any of the following cases:
Regular holiday-rest day rate for the first 8 hours on such a. When the country is at war or when any other national or local
holiday PLUS at least 30% thereof emergency has been declared by the National Assembly or the
Illustration: Chief Executive;
An employee with a daily wage of P145.00 whose rest day is on
a Sunday, and renders a 2-hour overtime work on the last b. When it is necessary to prevent loss of life or property or in case
Sunday of August (National Heroes Day), will receive P499.51, of imminent danger to public safety due to an actual or
computed as follows: impending emergency in the locality caused by serious
Regular Holiday Rate P145.00 x 200% + accidents, fire, flood, typhoon, earthquake, epidemic, or other
30%* = disaster or calamity;
P377.00
Hourly Rate P377.00 8 hours = c. When there is urgent work to be performed on machines,
P47.12 installations, or equipment, in order to avoid serious loss or
damage to the employer or some other cause of similar nature;
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d. When the work is necessary to prevent loss or damage to o Therefore, cash benefits not regularly and continuously
perishable goods; and enjoyed do not form part of the regular wage, hence,
they cannot be included in the computation of overtime
e. Where the completion or continuation of the work started before pay, night shift differential, etc.
the eighth hour is necessary to prevent serious obstruction or
prejudice to the business or operations of the employer. Art. 91 Right to weekly rest day.
Rest Day is the period of inactivity of not less than 24 consecutive hours
Any employee required to render overtime work under this Article shall to an employee after rendering service for a week.
be paid the additional compensation required in this Chapter. Week of labor ordinary number of six labor days.
Purpose of the law
1. Compulsory Overtime Work The purpose of granting a rest day is to promote the health, well-being
General Rule an employee cannot be compelled to render and happiness of the working class.
overtime work Rest day of ordinary employees: 24 consecutive hours after every six
o Reason it is violative of the constitutional injunction consecutive normal work days.
against involuntary servitude Rest day of health personnel:
Exceptions: Cities or municipalities:
a. War or emergency situation Less than 1M population or in hospital or clinics with less than
b. Disaster or calamity 100 bed capacity: 24 consecutive hours, after every 6 consecutive
c. Urgent repairs normal work days.
d. Preservation of perishable goods Atleast 1M population or in hospitals or clinics with atleast 100
e. Completion of work bed capacity: 48 hours after 5 days work.
f. Take advantage of favorable condition Who determines rest day?
GR: EMPLOYER
EXP: preference of the employee should be respected if based on
Art. 90. Computation of additional compensation. For purposes of religious grounds, provided he inform the employer in writing atleast 7
computing overtime and other additional remuneration as required by days before the desired effectivity of the initial rest day so preferred.
this Chapter, the "regular wage" of an employee shall include the cash Notice of rest day:
wage only, without deduction on account of facilities provided by the All employees simultaneously: written notice posted conspicuously in
employer. the workplace at least 1 week before it becomes effective.
Not to all employees: employer should inform the employees
1. The Regular Wage concerned through written notices posted conspicuously in the
Confined to cash wage ONLY, without deduction on account of workplace at least 1 week before it becomes effective.
facilities provided by the employer Art 92. When employer may require work on a rest day.
Includes all payments which the parties have agreed shall be GR: the employer may not require the employees to work on a restday.
received during the work week, including piecework wages, EXP:
differential payments for working at undesirable times, such as 1. Disaster/calamity
at night or on Saturdays and holidays, and the cost of board and 2. Urgent repairs
lodging customarily furnished the employee (NAWASA vs. 3. Abnormal pressure of work
NWSA Consolidated Unions) 4. Prevention of perishable goods
The essence is regularity and continuity of enjoyment 5. Nature of work
6. Favorable weather condition
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7. Exigencies of service Art 94. Right to holiday pay.
Art 93. Compensation of rest day, Sunday, or holiday work. Holiday pay
Premium pay Is a premium given to an employee during regular holidays.
Additional compensation given to a covered employee for Purpose: to prevent diminution of the monthly income
working on a holiday or rest day. of employees on account of work interruptions.
RATES: Rate: The holiday pay is 100% of the regular daily
a. On a rest day or special day wage.
Additional compensation of atleast 30% of his regular Employee is entitled to holiday pay even if he does not work
wage. during the regular holiday.
b. On a special day falling on a rest day If the employee works, he gets 200% of his regular daily wage.
Additional compensation of atleast 50% of his regular
wage. List of regular holidays
c. On a regular holiday a. New Years Day- Jan 1
Not exceeding 8 hours shall be paid atleast 200% of his b. Maundy Thursday- movable date
regular daily wage. c. Good Friday- movable date
d. On a regular holiday falling on a rest day d. Id-ul-Fitr- movable date
Additional compensation of atleast 30% of his regular e. Araw ng kagitingan- April 9
holiday rate of 200%. f. Labor Day- May 1
g. Independence Day- June 12
GR: Sunday work considered an ordinary day, not entitled to premium h. National Heroes Day- last Sunday of august
pay, i. Bonifacio day- Nov 30
EXP: unless it is the established rest day. j. Christmas Day- Dec 25
EXP to EXP: no regular work days and no regular rest day scheduled, k. Rizal Day- Dec 30
entitled to premium pay for the Sunday work. l. Eidl Adha- movable date
Muslim holidays (ART 169 of the code of muslim personal laws
Employees not entitles to premium pay: of the Philippines) by virtue of proclamation no. 1198 which took
a. Government employees and those employed in government- effect on oct 26, 197, all private corporations, offices, agencies
owned or controlled corporations; and entities or establishments operating within muslim provinces
b. Managerial employees within the purview of Book III of the labor and cities shall observe the said holidays, all employees
code; whether muslims or non-muslims, are excused from reporting
c. Officers and members of managerial staff; for work without reduction in their usual compensation.
d. Domestic servants; o Muslim employees working outside muslim provinces
e. Persons in the personal service of another; and cities shall also be excused without diminution or
f. Workers paid by result; loss of wage.
g. Non-agricultural field personnel; and
h. Members of the family of the employer who are dependent upon Employees Not entitled to holiday pay
him for support. a. Government employees and those employed in government-
th
owned or controlled corporations;
*premium pay not considered in computation of 13 month pay. b. Managerial employees;
c. Officers and members of managerial staff;
d. Domestic helpers;
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e. Persons in the personal service of another; If the days immediately preceding the regular holiday is a non-
f. Employees of retail and service establishments regularly working day or rest day of the employee, he is not deemed to be
employing less than 10 workers; on a leave of absence therefore entitled to holiday pay if he
g. Field personnel and other employees whose time and worked on the day preceding the non-working holiday.
performance is unsupervised by the employer; If there are 2 successive regular holidays, the employee is not
h. Members of the family of the employer who are dependent upon entitled to holiday pay if he absents himself on the day
him for support. immediately preceding the first holiday.
i. Workers paid by results. o However, if he works on the first holiday, he is entitled
to holiday pay on the second holiday.
Rules:
Double Holiday:
Piece rate workers: not entitled, paid at fixed amount performing work 200% of the basic wage
irrespective of time consumed in performance. o Entitled even if said holiday is unworked
400% if he worked on 2 regular holidays falling on the same
Sales personnel: not entitled, they regularly perform their duties away day.
from the principal place of business, and their actual hours of work
cannot be determined with reasonable certainty. Holidays when business is closed
Temporary: entitled
Seasonal workers: not entitled during off- season when they are not at Permanent: not entitled
work.
ART 95. Right to service Incentive leave
Teacher and faculty members: not entitled to holiday pay on regular
holidays falling within semestral vacation. However, entitled on regular Service incentive leave:
holidays falling within the Christmas vacation. is akin to vacation leave.
Faculty members who according to their contracts are paid per Intended not merely to give additional salary but to give chance
lecture hour: not entitled because they are obliged to work and to get much needed rest in order to replenish his worn our
consent to be paid only for work actually done. energies.
Law grant 5 days leave with pay for every employee who has
Monthly-paid employees: entitled
rendered at least 1 year of service.
*GR: for the company with the divisor 365 already means that
If not used at the end of the year, shall be commuted to its
the legal holidays are included in the monthly pay of the employee.
money equivalent.
*GR: for company with the divisor 251 means that the holiday
pay is not included in the monthly salary of the employee.
Employees not entitled:
a. Government employees and those employed in government-
Effects of Absences:
owned or controlled corporations;
Covered employees are entitled to holiday pay when they are on
b. Managerial employees;
leave of absence with pay.
c. Officers and members of managerial staff;
Employees who are on leave of absence without pay on the day d. Domestic helpers;
immediately preceding the regular holiday are not entitled to e. Persons in the personal service of another;
holiday pay.
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f. Employees of retail and service establishments regularly
employing less than 10 workers; ARTICLE 130.Nightwork Prohibition
g. Field personnel and other employees whose time and -applies to all employers whether operating for profit or not:
performance is unsupervised by the employer; (a) government employees and GOC or GCC
h. Members of the family of the employer who are dependent upon (b) employers of household helpers and persons in personal service of
him for support. another
i. Those who are already enjoying leave with pay atleast 5 days;
General Rule: An employer cannot require a female employee to work
*Vacation Leave: not standard of law, management prerogative. with or without compensation on the following hours:
(a) industrial establishment- 10:00pm to 6:00am
ART 96. Service charge: (b) commercial establishment- 12midnight to 6:00am
Applies only to business establishments collecting service (c) agricultural establishment- nighttime (the period commencing
charges, such as hotels, restaurants and similar enterprises, from sunset to sunrise[Art. 13 of CC]
including those entities operating primarily as private
subsidiaries of the government. ARTICLE 131.Exceptions
-nightwork prohibition does not apply t the following cases:
Employees entitled to service charge: (a) emergency situation- disasters or calamity, or in case of force
All employees, regardless of their position, designation, majeure or imminent danger to public safety
employment status, irrespective of the method by which they are (b) urgent repairs- on machineries, equipment or installation to avoid
paid, except managerial employees. serious loss
(c) urgent work- to prevent serious loss of perishable goods
Distribution of service charge: (d) managerial or technical employees
85% for covered employees (e) health and welfare employees-
15% for management (f) peculiarity of work- where the work cannot be performed with equal
Distribution to covered employees shall be done not less than efficiency by male workers
once every two weeks or twice a month intervals not exceeding (g) family members- the immediate member of the family operating the
16 days. establishment
(h) established practice- where the employment of female workers is the
Abolition of service charge: established practice even before the rules of implementing the Labor
The share of the covered employees shall be considered Code became effective (Feb. 3, 1975)
integrated in their wages. (i) analogous cases- exempted by the Secretary of Labor in appropriate
The basis of the amount to be integrated shall be the average share of cases
each employee for the past 12 months immediately preceding the
abolition or withdrawal of such charges. ARTICLE 132.Facilities for Women
-employers may be required to provide the following facilities to female
workers which shall be regulated in appropriate cases by the Secretary
Title III of Labor:
Working Conditions for Special Groups of Women (a) seats
(b) toilet rooms, lavatories, a dressing room
Chapter I (c) nursery
Employment of Women
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ARTICLE 133.Maternity Leave Benefits (a) a woman who gives birth as a result of rape or crimes against
-has been superseded with the integration of maternity leave with the chastity, WON the offender is convicted
Social Security Law, Sec. 14-A: (b) a parent left solo with the responsibility of parenthood due to:
-female workers must have paid at least 3 monthly contributions i. death of the spouse
in the 12-month period immediately preceding the childbirth, abortion, ii. detention of the spouse for at least a year
miscarriage iii. physical of mental incapacity of spouse
-shall be paid daily maternity benefit equivalent to her average iv. legal separation of spouse of de facto separation as long as
daily salary he/she is entitled to the custody of the children
(a) 60days- normal delivery v. declaration of nullity of marriage, above condition applies
(b) 78days- cesarean delivery vi. abandonment of the spouse for at least one year
-conditions: (c) unmarried mother/father
(a) Employee has notified her employer of her pregnancy ad the (d) any other person, provided that he/she is a licensed foster parent by
probable date of birth the DSWD or appointed as guardian by the court
(b) Full payment shall be advanced by the employer 30days from (e) any family member who assumes as the head of the family because
filing of the application of death, absence, disappearance of abandonment of parents, provided
(c) Payment of benefits bars the recovery of sickness benefits within that such lasts for at least a year
the period of leave -entitled to a non-cumulative parental leave of 7 working days
(d) Applicable only for the first four deliveries or miscarriages -purpose: enable the solo parent to perform parental duties
(e) SSS shall immediately reimburse the employer 100% -conditions:
(f) Employer will pay to the SSS damages equivalent to the benefits (a) employee must have rendered at least one year of service
which the female employee is entitled, in cases where: (b) must notify the employer within a reasonable time
o 1) he failed to remit the SSS contributions required (c) must present his Solo Parent ID to the employer
o 2) he failed to notify SSS of such pregnancy
ARTICLE 134. Family Planning Services; Incentives for Family Planning
Paternity Leave (R.A No. 8187) -application: to all establishments which habitually employ at least 200
Leave for 7 days at any given period within a year
-Who are entitled? Married male employees for the first 4 deliveries of -In-plant family planning requirements:
the legitimate spouse with whom he is cohabiting (a) a functional Labor-Management Coordinating Committee (2 to 3
-conditions: representatives from each management sectors)
(a) male employee should be employed at the time of the delivery of his (b) an in-plant family planning program
child (c) a clinic equipped with instruments for family planning services
(b) employee should notify his employer about the pregnancy of his wife -exempted establishments must have a family planning clinic in the
and the expected date of delivery workplace which should have a part-time physician who shall render
(c) wife has given birth, suffers a miscarriage or an abortion 2hours a day for at least 5days, unless the establishment has a contract
- paternity leave is not convertible to cash with a hospital
- leave can be availed of before, during or after the delivery by his wife,
but not later than 60 days the delivery ARTICLE 135. Discrimination Prohibited
-It shall be unlawful to discriminate against women employee:
Parental Leave for Solo Parents (R.A No. 8972- Solo Parents Act of (a) payment of lesser compensation as against male employee
2000) for work of equal value
-Who are solo parents:
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(b) favoring male employees (promotion, training opportunities,
study, scholarship grants) solely on the account of their sexes ARTICLE 139. Minimum Employment Age
-purpose: to provide equal employment opportunities for all and ensure -superseded by RA No. 7610, as amended by RA nos. 7658 and 9231
the fundamental equalities of men and women -General Rule: a person can be engaged for employment only when he
is 15 years old
ARTICLE 136.Stipulation Against Marriage -Exceptions, children below 15 can be employed only in the following
-Prohibited acts of an employer: instances:
(a) that a female employee shall not get married (a) when the child works directly under the sole responsibility of his
(b) to resign upon getting married parent or guardian, and only member of his family is employed therein,
(c) dismissing or discriminating a female employee because of her provided that:
marriage i. employment neither endangers his life, safety, health and
morals, nor impairs his normal development
-Philippine Telegraph & Telephone Co. vs NLRC: ii. child is prescribed with primary and secondary education
Facts: Female was hired by employer. She indicated that she was single (b) childs employment in public and entertainment or information
in her job application form despite the fact that she had contracted through cinema, theater, radio or TV is essential:
marriage a few months earlier. When the employer learned that she was -House Work:
married, she was dismissed from employment. Employer has a (a) children below 15- not more than 4 hours, but not more than
company policy of not accepting married women. 20/week
Held: Dismissal is not valid. It runs afoul to the right against (b) children 15 but below 18- not more than 8 hours a day, but
discrimination, afforded to women workers. It likewise assaults good not more than 40/week
morals and public policy. It strikes the ideals and purpose of marriage as -Nightwork prohibition:
an inviolable social institution. (a) children below 15- 8pm to 6am
(b) children 15 but below 18- 10pm to 6am
ARTICLE 137.Prohibited Acts -Worst Forms of Child Labor:
- Forbids an employer from: -slavery, prostitution, pornography, illegal activities (i.e
(a) dismiss a female employee to prevent her to enjoy maternity leave dangerous drugs), nature of work in which it is carried out in hazardous
benefits, etc or likely to be harmful to health, safety and morals of children
(b) dismiss a female employee on the account of her pregnancy, while
on leave ARTICLE 140. Prohibition Against Child Discrimination
(c) dismiss or refuse the admission of female employee upon returning -they must not be discriminated against simply on account of minority.
to work -minors must be entitled to the same benefits, terms, and conditions of
employment as any other kind of employee similarly situated
ARTICLE 138. Classification of Certain Women Workers
- Female workers in entertainment places (night club, cocktail Chapter III
lounge, massage clinic, bar, etc) are deemed employed if they Employment of Househelpers
have worked therein for a substantial period of time under the
effective control or supervision of the employee. ARTICLE 141. Coverage
-shall apply to all persons rendering services in households for
compensation.
Chapter 2 Domestic or household service: services in the employers home which
Employment of Minors is usually necessary or desirable in the maintenance and enjoyment
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thereof and includes ministering to the personal comfort and ARTICLE 145.Assignment to Non-Household Work
convenience of the members of the employers household, including -what is prohibited is not the assignment to work in a commercial,
services of family drivers. industrial or agricultural enterprise; it is the payment of wage lower than
- other examples: gardeners, cooks, nursemaids those prescribed in the non-household work
- One should be hired specifically for household work. In absence
of specific engagement one cannot be considered househelper. ARTICLE 146.Opportunity for Education
Ex. Children of househelper or relatives who live under the -if under 18years old, the employer shall give him/her an opportunity for
employers roof at least elementary education
-expenses shall be part of the compensation
Apex Mining Co. vs NLRC:
FACTS: SC was employed by Apex Mining as laundrywoman at its ARTICLE 147.Treatment of househelpers
staffhouse. While she was doing the laundry, she accidentally slipped - just and humane manner
and hit her back on a stone. She was permitted to go one leave for the - in no case shall physical violence be used
medication but after such she was not allowed to return to work. She Working hours: not more than 10hours a day; with 4days vacation each
filed a complaint for illegal dismissal. Apex Minings defense is that she month with pay
was not a regular employee but a househelper.
HELD: She was not a househelper but a regular employee. She was not ARTICLE 148. Board, Lodging and Medical Attendance
working for a family but for a compensation. -Medical attendance is limited to treatment for ailments contracted by
househelper while in the service of the employer
Barcenas vs. NLRC: -Does not include hospitalization
FACTS: B was hired by Manila Buddist Temple as secretary and -Contract for household service shall be void if household helper cannot
interpreter. Bs position required her to receive calls of the Head Monk, afford to acquire clothing
run errands for the Head Monk. After the death of the Head Monk, Bs -in case of death, employer shall bear the funeral expenses
allowance was discontinued. B filed a compliant for illegal dismissal. The commensurate to the standard of living of the deceased
Manila Buddist Temple claimed that she was not its employee but a -the transfer or use of the body of the deceased is prohibited, unless
servant who confined herself to the needs of the Head Monk, thus, her allowed by him or the legal guardian with court approval
position was coterminous with that of her master.
HELD: B was a regular employee. Her work cannot be categorized as
mere domestic but essential to the operation and religious functions of ARTICLE 149.Indemnity for Unjust Termination
the temple. -If period is fixed, neither the employer nor the household helper ay
terminate, except for a just cause
ARTICLE 142. Contracts of Domestic Service -If household helper is unjustly dismissed: he shall be paid the
-maximum of 2 years compensation plus that for 15days by way of indemnity
-If household helper leaves without justifiable reason: he shall forfeit
ARTICLE 143. Minimum Wage unpaid salary due him not exceeding 15days
-amended
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ARTICLE 151.Employment Certification (a) time and motion studies
- a written statement of the nature and duration of the service (b) individual/ collective agreement between the employer and
- includes,the efficiency and conduct as household helper its workers as approved by the Secretary of Labor or his representative
(c) consultation with representative of employers and workers
ARTICLE 152.Employment Records orgs in a tripartite conference
- employer may keep records to reflect the actual terms and
conditions of employment ARTICLE 155: Distribution of Homework
- helper shall authenticate such by signature or thumbmark -employer of homeworkers- includes: any person, natural or artificial,
who, for his account, or on behalf of any person residing outside the
country, directly or indirectly, or through any employee, agent,
contractor, or subcontractor, or any other person:
(1) delivers or causes to be delivered any materials to be
processed in a home and thereafter to be returned and distributed
Chapter IV according to his directions
Employment of Homeworkers (2) sells any goods, articles, materials to be processed or
fabricated in a home and then rebuys them after such processing, either
ARTICLE 153.Regulation of Industrial Homeworkers himself or though another person
-Industrial homework- a system of production under which work for an -agents of foreign principals are considered employers
employer or contractor is carried out by a homeworker at his home. -contractor and subcontractor- any person who for the account of or
Limitation: benefit of an employer delivers or causes to be delivered to the
(a) explosives, fireworks, and similar articles homeworker goods or articles; and thereafter be returned or distributed
(b) drugs and poisons according to the direction of employer
(c) other articles, processing of which requires exposure to toxic -employer is jointly and severally liable with the contractor or
substances subcontractor
-Homeworkers organization, may be form, assist or join organizations
duly registered with the Dept. of Labor
-the duly registered organization has the right to bargain collectively, to
own property, to sue and be sued, etc. SPECIAL LAWS
ARTICLE 154. Regulations of the Secretary of Labor REPUBLIC ACT NO. 10151
-Payment for Homework- immediately upon receipt of the finished goods
or articles AN ACT ALLOWING THE EMPLOYMENT OF NIGHT WORKERS,
-Conditions: THEREBY REPEALING ARTICLES 130 AND 131 OF PRESIDENTIAL
(a) employer may require the homeworker to redo a work which has DECREE NUMBER FOUR HUNDRED FORTY-TWO, AS AMENDED,
been improperly executed without having to pay the stipulated rate OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES
again
(b) an employer, contractor or sub-contractor need not pay the home SECTION 1. Article 130 of the Labor Code is hereby repealed.
worker for any work which has been done on goods or articles which SEC. 2. Article 131 of the Labor Code is hereby repealed.
have been returned for reasons attributable to the fault of the SEC. 3. The subsequent articles in Boot Three, Title III, Chapter I to
homeworker Chapter IV of Presidential Decree No. 442 are hereby renumbered
-Standard rates shall be determined through the ff. procedure: accordingly.
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SEC. 4. A new chapter is hereby inserted after Book Three, Title III of If such transfer to a similar job is not practicable, these workers shall be
Presidential Decree No. 442, to read as follows: granted the same benefits as other workers who are unable to work, or
Chapter V to secure employment during such period.
Employment of Night Workers A night worker certified as temporarily unfit for night work shall be given
Art. 154. Coverage. This chapter shall apply to all persons, who shall the same protection against dismissal or notice of dismissal as other
be employed or permitted or suffered to work at night, except those workers who are prevented from working for reasons of health.
employed in agriculture, stock raising, fishing, maritime transport and Art. 158. Women Night Workers. Measures shall be taken to ensure
inland navigation, during a period of not less than seven (7) consecutive that an alternative to night work is available to women workers who
hours, including the interval from midnight to five oclock in the morning, would otherwise be called upon to perform such work:
to be determined by the Secretary of Labor and Employment, after (a) Before and after childbirth, for a period of at least sixteen (16)
consulting the workers representatives/labor organizations and weeks, which shall be divided between the time before and after
employers. childbirth;
Night worker means any employed person whose work requires (b) For additional periods, in respect of which a medical certificate is
performance of a substantial number of hours of night work which produced stating that said additional periods are necessary for the
exceeds a specified limit. This limit shall be fixed by the Secretary of health of the mother or child:
Labor after consulting the workers representatives/labor organizations (1) During pregnancy;
and employers. (2) During a specified time beyond the period, after childbirth is fixed
Art. 155. Health Assessment, At their request, workers shall have the pursuant to subparagraph (a) above, the length of which shall be
right to undergo a health assessment without charge and to receive determined by the DOLE after consulting the labor organizations and
advice on how to reduce or avoid health problems associated with their employers.
work: During the periods referred to in this article:
(a) Before taking up an assignment as a night worker; (i) A woman worker shall not be dismissed or given notice of dismissal,
(b) At regular intervals during such an assignment; and except for just or authorised causes provided for in this Code that are
(c) If they experience health problems during such an assignment which not connected with pregnancy, childbirth and childcare responsibilities.
are not caused by factors other than the performance of night work. (ii) A woman worker shall not lose the benefits regarding her status,
With the exception of a finding of unfitness for night work, the findings seniority, and access to promotion which may attach to her regular night
of such assessments shall not be transmitted to others without the work position.
workers consent and shall not be used to their detriment. Pregnant women and nursing mothers may he allowed to work at night
Art. 156. Mandatory Facilities. Suitable first-aid facilities shall be only if a competent physician, other than the company physician, shall
made available for workers performing night work, including certify their fitness to render night work, and specify, in the ease of
arrangements where such workers, where necessary, can be taken pregnant employees, the period of the pregnancy that they can safely
immediately to a place for appropriate treatment. The employers are work.
likewise required to provide safe and healthful working conditions and The measures referred to in this article may include transfer to day work
adequate or reasonable facilities such as sleeping or resting quarters in where this is possible, the provision of social security benefits or an
the establishment and transportation from the work premises to the extension of maternity leave.
nearest point of their residence subject to exceptions and guidelines to The provisions of this article shall not have the effect of reducing the
be provided by the DOLE. protection and benefits connected with maternity leave under existing
Art. 157. Transfer. Night workers who are certified as unfit for night laws.
work, due to health reasons, shall be transferred, whenever practicable, Art. 159. Compensation. The compensation for night workers in the
to a similar job for which they are fit to work. form of working time, pay or similar benefits shall recognize the
exceptional nature of night work.
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Art. 160. Social Services.Appropriate social services shall be who shall prejudice any person for assisting a co-employee who is a
provided for night workers and, where necessary, for workers performing victim under this Act shall likewise be liable for discrimination.
night work.
Art. 161. Night Work Schedules. Before introducing work schedules
requiring the services of night workers, the employer shall consult the
workers representatives/labor
Republic Act No. 9710
organizations concerned on the details of such schedules and the forms
of organization of night work that are best adapted to the establishment
and its personnel, as well as on the occupational health measures and AN ACT PROVIDING FOR THE MAGNA CARTA OF WOMEN
social services which are required. In establishments employing night
workers, consultation shall take place regularly.
SEC. 8. Penalties. Any violation of this Act, and the rules and Section 18. Special Leave Benefits for Women. - A woman employee
regulations issued pursuant hereof shall be punished with a fine of not having rendered continuous aggregate employment service of at least
less than Thirty thousand pesos (P30,000.00) nor more than Fifty six (6) months for the last twelve (12) months shall be entitled to a
thousand pesos (P50,000.00) or imprisonment of not less than six (6) special leave benefit of two (2) months with full pay based on her gross
months, or both, at the discretion of the court. If the offense is committed monthly compensation following surgery caused by gynecological
by a corporation, trust, firm, partnership or association, or other entity, disorders.
the penalty shall be imposed upon the guilty officer or officers of such
corporation, trust, firm, partnership or association, or entity.
(9) Any other person who solely provides parental care and support to
Section 3. Definition of Terms. - Whenever used in this Act, the a child or children;
following terms shall mean as follows:
(10) Any family member who assumes the responsibility of head of
(a) "Solo parent" - any individual who falls under any of the following family as a result of the death, abandonment, disappearance or
categories: prolonged absence of the parents or solo parent.
(1) A woman who gives birth as a result of rape and other crimes A change in the status or circumstance of the parent claiming
against chastity even without a final conviction of the benefits under this Act, such that he/she is no longer left alone with
offender: Provided, That the mother keeps and raises the child; the responsibility of parenthood, shall terminate his/her eligibility for
these benefits.
(2) Parent left solo or alone with the responsibility of parenthood due
to death of spouse; Section 6. Flexible Work Schedule. - The employer shall provide for a
flexible working schedule for solo parents: Provided, That the same shall
not affect individual and company productivity: Provided, further, That
(3) Parent left solo or alone with the responsibility of parenthood while
any employer may request exemption from the above requirements from
the spouse is detained or is serving sentence for a criminal conviction
the DOLE on certain meritorious grounds.
for at least one (1) year;
TITLE II
(6) Parent left solo or alone with the responsibility of parenthood due
Wages
to declaration of nullity or annulment of marriage as decreed by a
court or by a church as long as he/she is entrusted with the custody of
Chapter 1
the children;
PRELIMINARY MATTERS
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ARTICLE 97. Definitions. As used in this Title: Wages remunerations or earnings payable by an employer to
an employee for work done or to be done or for services
(a) Person means an individual, partnership, association, corporation, rendered or to be rendered.
business trust, legal representatives, or any organized group of persons. - It should arise from employer-employee relationship
- Includes the fair and reasonable value of board, lodging, and
(b) Employer includes any person acting directly o r indirectly in the other facilities customarily furnished by the employer to the
interest of an employer in relation employee
to an employee and shall include the government and all its branches, - Customarily founded on long-established and constant
subdivisions and instrumentalities, all government-owned or controlled practice connoting regularity
corporations and institutions, as well as non-profit private institutions, or
organizations. WAGES SALARY
Both refer to a reward or recompense for services
performed
(c) Employee includes any individual employed by an employer.
Compensation for manual Denotes a higher grade of
labor, skilled or unskilled, employment, or a superior
(d) Agriculture includes farming in all its branches and, among other paid at stated times and grade of services and
things, includes cultivation and measured by the day, implies a position in office
tillage of soil, dairying, the production, cultivation, growing and week, month, or season
harvesting of any agricultural and Indicates considerable Suggestive of a higher and
horticultural commodities, the raising of livestock or poultry, and any play for lower and less more important service
practices performed by a farmer responsible character of
on a farm as an incident to or in conjunction with such farming employment
operations, but does not include the Exempt from attachment Not exempt
manufacturing or processing of sugar, coconuts, abaca, tobacco, or execution
pineapples or other farm products.
Basic Wage regular base pay of an employee
(e) Employ includes to suffer or permit to work.
Facilities items of expense necessary for the laborers and his
(f) Wage paid to any employee shall mean the remuneration or familys existence and subsistence
earnings, however designated, capable of being expressed in terms of
money, whether fixed or ascertained on a time, task, piece, or - The cost of facilities furnished by the employer may be deducted
commission basis, or other method of calculating the same, which is or charged against an employee under the ff conditions:
payable by an employer to an employee under a written or unwritten 1. The facilities must be customarily furnished by the trade
contract of employment for work done or to be done, or for services 2. The provisions of deductible facilities must be voluntarily
rendered or to be rendered and includes the fair and reasonable value, accepted in writing by the employee
as determined by the Secretary of Labor and Employment, of board, 3. The facilities must be charged at fair and reasonable value
lodging, or other facilities customarily furnished by the employer to the
employee. Fair and reasonable value shall not include any profit to the Supplements extra remuneration or special privileges or
employer, or to any person affiliated with the employer. benefits given to or received by the laborers over and above
their ordinary earnings or wages.
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- Criterion whether a benefit is a supplement or a facility: purpose 4. Private school teachers who have worked at least 1 month
- Purpose: primarily for the benefit of the employee, not within the yr
considered as facility 5. Employees working in two or more private firms whether on
- Ex. Transportation allowance full-time or part-time basis
6. Employees who resigned or whose services were
th
- Sales Commission forms part of wage/salary where there terminated before the payment of the 13 month pay
exists e-e relationship
th
Employers exempted from the 13 month pay law:
Bonus an amount granted and paid to an employee for his 1. The govt and any of its subsidiaries, including GOCCs,
industry and loyalty which contributed to the success of the except those corps operating essentially as private
employers business and made possible the realization of profits subsidiaries of the govt
th
- GR: not a demandable and enforceable obligation 2. Those already paying their employees a 13 month pay or
- Exceptions: more in a calendar yr or its equivalent
1. If the grant thereof is the result of an agreement 3. Employers of household helpers and persons in the
2. If made part of the wages personal service of another in relation to such workers
Bonus is considered part of the wages: 4. Those paid purely on commission, boundary or task basis,
a. If it is given in a fixed amount without any and those who are paid fixed amount for performing specific
condition, regardless of w/n profits are realized work, except where the workers are paid on a piece-rate
b. If it has ripened into practice by virtue of its long basis
th
and regular concession Time of payment of 13 month pay: December 24 of each yr or
th
- To be considered a regular practice, the giving of bonus 14 month pay gratuitous
should have been done consistently, voluntarily and
deliberately over a long period of time.
th ARTICLE 98. Application of Title. This Title shall not apply to farm
13 month pay extra remuneration given to an employee in an tenancy or leasehold, domestic service and persons working in their
amount equivalent to 1/12 of the basic salary earned by an respective homes in needle work or in any cottage industry duly
employee within a calendar year registered in accordance with law.
- In its computation, only the basic salary should be
considered
Exceptions on the application of the Coverage of the Law on
Wages:
Overload excess of the normal or regular teaching load
1. Household or domestic helpers
- Extra pay not part of the basic salary, not included in
th 2. Homeworkers engaged in needlework
the computation of the 13 month pay
3. Workers employed in any cottage industry duly registered in
th accordance with law, if performed by workers in their
Entitled to 13 month pay:
respective homes
1. Rank-and-file employees who have worked for at least 1
4. Workers in any duly registered cooperative when so
month during a calendar yr
recommended by the Bureau of Cooperative Development
2. Employees who are paid on piece-work basis
and upon approval of the Secretary of DOLE
3. Employees who are paid a fixed or guaranteed wage plus
5. Farm tenancy or leasehold
commission
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1. It cannot be waived (mandatory)
2. Not bargainable
Piece workers connote a laborer or worker with no fixed When payment of wages by check or money order:
salary, wages or remuneration but receiving as compensation 1. When such manner of payment is customary on the date of
from his employer depending upon the work done or the result the effectivity of the LC
of the said work irrespective of the amount of time employed 2. When so stipulated in a CBA
The compensation of workers paid by results should not be less 3. When there is a bank or other facility for encashment within
than the statutory minimum wage for an 8-hr work or a the radius of 1 km from the workplace, provided:
proportion thereof for less than 8 hrs work a. that the employer or any of his agent does not receive
In the absence of such prescribed wage rates for piece-rate any pecuniary benefit directly or indirectly from the
workers, the ordinary minimum wage rates prescribed by the arrangement,
RTWPB shall apply. b. that the employees are given reasonable time during
banking hours to withdraw their wages from the bank
Chapter 3 during company time,
PAYMENT OF WAGES c. that the employee consents to such an agreement, in
the absence of a collective agreement on the matter
ARTICLE 102. Forms of payment. No employer shall pay the wages
of an employee by means of promissory notes, vouchers, coupons,
tokens, tickets, chits, or any object other than legal tender, even when ARTICLE 103. Time of payment. Wages shall be paid at least once
expressly requested by the employee. Payment of wages by check or every two (2) weeks or twice a month at intervals not exceeding sixteen
money order shall be allowed when such manner of payment is (16) days. If on account of force majeure or circumstances beyond the
customary on the date of effectivity of this Code, or is necessary employers control, payment of wages on or within the time herein
because of special circumstances as specified in appropriate regulations provided cannot be made, the employer shall pay the wages
to be issued by the Secretary of Labor and Employment or as stipulated immediately after such force majeure or circumstances have ceased. No
in a collective bargaining agreement. employer shall make payment with less frequency than once a month.
Legal Tender that currency which has been made suitable by law for The payment of wages of employees engaged to perform a task which
the purpose of tender of payment of debts. cannot be completed in two (2) weeks shall be subject to the following
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conditions, in the absence of a collective bargaining agreement or 1. Actual or impending emergencies caused by fire, flood, etc
arbitration award: rendering payment thereat impossible
2. When the employer provides free transportation back and
(1) That payments are made at intervals not exceeding sixteen (16) forth
days, in proportion to the amount of work completed; 3. Under any other analogous circumstances, provided that
the time spent by the employees in collecting their wages
shall be considered as compensable hours of work
(2) That final settlement is made upon completion of the work.
Payment in recreational places prohibited
Frequency of Payment
Payment through ATM, allowed under certain conditions
GR: wages shall be paid not less than once every 2 weeks or
twice a month at intervals not exceeding 16 days
Exception: in cases of wages pertaining to task which cannot be
ARTICLE 105. Direct payment of wages. Wages shall be paid
finished in 2 weeks, payment thereof shall be made at intervals
not exceeding 16 days in proportion to the amount of work directly to the workers to whom they are due, except:
completed. Final settlement shall be made immediately upon
completion of work. (a) In cases of force majeure rendering such payment impossible or
Delayed payment of wages may be excused on account of: under other special circumstances to be determined by the Secretary of
1. Force majeure events which arise from legitimate or Labor and Employment in appropriate regulations, in which case, the
illegitimate acts of persons other than the employer, such as worker may be paid through another person under written authority
war, robbery, etc given by the worker for the purpose; or
2. Circumstances beyond control fortuitous events
independent of human intervention, such as floods, (b) Where the worker has died, in which case, the employer may pay the
typhoons, earthquakes, and other natural calamities wages of the deceased worker to the heirs of the latter without the
Payment of wages should be made immediately thereafter necessity of intestate proceedings. The claimants, if they are all of age,
shall execute an affidavit attesting to their relationship to the deceased
No work, no pay and the fact that they are his heirs, to the exclusion of all other persons.
- Exceptions: If any of the heirs is a minor, the affidavit shall be executed on his behalf
a. Employee illegally locked out by his natural guardian or next-of-kin. The affidavit shall be presented to
b. Dismissal the employer who shall make payment through the Secretary of Labor
c. Suspension and Employment or his representative. The representative of the
Secretary of Labor and Employment shall act as referee in dividing the
ARTICLE 104. Place of payment. Payment of wages shall be made amount paid among the heirs. The payment of wages under this Article
at or near the place of undertaking, except as otherwise provided by shall absolve the employer of any further liability with respect to the
such regulations as the Secretary of Labor and Employment may amount paid.
prescribe under conditions to ensure greater protection of wages.
GR: Wages should be paid directly to the employee
Place of payment: Exceptions:
GR: near the place of undertaking 1. Where the employer is authorized in writing by the
Exceptions: employee to pay his wages to a member of the family
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2. Where payment to another person of any part of the agent of the employer who shall be responsible to the workers in the
employees wage is authorized by existing law same manner and extent as if the latter were directly employed by him.
3. In case of death of employee
4. In case of force majeure Contracting/subcontracting one whereby an employer
engages the services of a contractor to perform a certain work,
If a specific job was contracted by a group, payment of wages task or job on his account under his own responsibility free from
may be coursed through the leader of the group the control and direction of his employer in all matters except as
Payment of wages of an employee who has died: to the heirs to the result of the work
who should submit to the employer an affidavit attesting to their - Not illegal per se. (refer to Arts. 106-107)
relationship with their deceased and the fact that they are his
heirs, to the exclusion of all other persons. Requisites of valid contracting/ subcontracting:
1. The contractor or subcontractor must have a distinct and
ARTICLE 106. Contractor or subcontractor. Whenever an employer independent business and must undertake to perform the
enters into a contract with another person for the performance of the job, work or service on his account, under his own
formers work, the employees of the contractor and of the latters responsibility, according to his own manner and method,
subcontractor, if any, shall be paid in accordance with the provisions of free from control and direction of the principal in all matters
this Code. connected with the performance of the work, except as to
the results thereof; and
In the event that the contractor or subcontractor fails to pay the wages of 2. The contractor or subcontractor must have substantial
his employees in accordance with this Code, the employer shall be capital or investment in the form of tools, equipment,
jointly and severally liable with his contractor or subcontractor to such machineries, work premises and other materials which are
employees to the extent of the work performed under the contract, in the necessary in the conduct of the business
same manner and extent that he is liable to employees directly
employed by him. Substantial capital or investment: Php3M
Legal effect of legitimate contracting or subcontracting
The Secretary of Labor and Employment may, by appropriate : does not create an e-e relationship between himself
regulations, restrict or prohibit the contracting-out of labor to protect the and the employees of the contractor
rights of workers established under this Code. In so prohibiting or : The employees of the contractor remain the
restricting, he may make appropriate distinctions between labor-only contractors employees and his alone.
contracting and job contracting as well as differentiations within these However, when the contractor fails to pay the wages of his
types of contracting and determine who among the parties involved shall employees in accordance with the LC, the employer becomes
be considered the employer for purposes of this Code, to prevent any jointly and severally liable with his contractor for such wages to
violation or circumvention of any provision of this Code. the extent of the work performed under the contract
The party with whom an independent contractor deals is
There is labor-only contracting where the person supplying workers to solidarily liable with the latter for unpaid wages, and only to that
an employer does not have substantial capital or investment in the form extent and for that purpose that the latter is considered a direct
of tools, equipment, machineries, work premises, among others, and the employer.
workers recruited and placed by such person are performing activities
which are directly related to the principal business of such employer. In
such cases, the person or intermediary shall be considered merely as an When contracting or subcontracting is illegal:
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1. Labor-only contracting an arrangement whereby the Illegal only if the job, work, or service contracted is
contractor who does not have substantial capital or directly related to the business of the principal.
investment in the form of tools, equipment, machineries, 5. Contracting out work when not done in good faith and not
and work premises, merely recruits, supplies or places justified by the exigencies of the business and the same
workers only, to a principal employer to perform a job, work results in the termination of regular employees, reduction of
or activity that is directly related to the main business of the work hours, or reduction or splitting of the bargaining unit
principal employer. 6. Contracting out work being performed by union members
Elements: when such will interfere with, restrain or coerce employment
a. The contractor supplies workers only to a principal in the exercise of their right to self-organization
employer Illegal only when such will interfere with, restrain or
b. The workers perform activities that are directly coerce employees in the exercise of their right to self-
related to the main business of the principal organization.
c. The contractor does not have substantial capital or
investment to actually perform the job, work or Other prohibited activities: (badfaith)
service under its own account or service under its 1. Requiring him to perform functions, which are currently
own account or responsibility. being performed by the regular employees of the principal
Legal effect or of the contractor or of the subcontractor
: The law establishes an e-e relationship between the 2. Requiring him to sign as a precondition to employment or
principal employer and the employees of the contractor continued employment, an antedated resignation letter, a
: The contractor is considered as a mere agent of the blank payroll; a waiver of labstand including minimum
principal employer, and therefore, both the principal wages and social or welfare benefits, or a quitclaim
employer and the contractor are solidarily liable for al releasing the principal contractor or subcontractor from any
rightful claims of the employees liability as to payment of future claims
2. Contracting out work with a cabo 3. Requiring him to sign a contract fixing the period of
Cabo refers to a person or group of persons or to a employment to a term shorter than the term of the contract
labor group which, in the guise of a lab org, supplies between the principal and the contractor or subcontractor,
workers to an employer, with or without monetary or unless the latter contract is divisible into phases for which
other consideration, whether in the capacity of an agent substantially different skills are required and this is made
of the employer or as an ostensible independent known to the employee at the time of engagement.
contractor.
3. Contracting out work through an in-house agency
In-house agency refers to a contractor or ARTICLE 107. Indirect employer. The provisions of the immediately
subcontractor engaged in the supply of labor which is preceding article shall likewise apply to any person, partnership,
owned, managed or controlled by the principal and association or corporation which, not being an employer, contracts with
which operates solely for the principal. an independent contractor for the performance of any work, task, job or
4. Contracting out work that is directly related to the business project.
or operation of the principal by reason of a strike or lockout,
whether actual or imminent
Independent contractor a person who carries on an
A criterion for determining w/n there is labor-only independent business and undertakes the contract work on his
contracting and contemplates employees hired through own account, under his own responsibility, according to his own
a contractor or intermediary.
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manner and method, free from the control and direction of his
employer or principal in all matters connected with the Job contracting Labor-only contracting
performance f the work except as to the result thereof; and has The contractor provides The contractor provides
substantial capital or investment in the form of tools, equipment, services man-power only
machineries, work premises, and other materials which are No e-e relationship exists There exists an e-e
necessary in the conduct of the business. between the employees of relationship created by law
Mere absence of bond is not a controlling factor in determining the contractor and the between the principal
whether a person is an independent contractor. principal employer employer and the
Contractors and subcontractors are required to register with the employees of the labor-
DOLE. Failure to register shall give rise to the presumption that only contractor
the contractor is engaged in labor-only contraction. The principal employer is Employer is considered a
considered only an indirect direct employer
Trilateral relationship exists in legitimate labor contracting employer
- The principal decides the job or service to be contracted The principal employer The principal employer
out, while the contractor undertakes to perform the job and the contractor are and the labor-only
or service, and the workers accomplish the job or solidarily liable only for contractor are solidarily
service unpaid wages liable for all the rightful
claims of the contractors
Factors determinative of independent contractorship: employees
Control factor in an independent contractorship: confined to the ARTICLE 109. Solidary liability. The provisions of existing laws to
results the contrary notwithstanding, every employer or indirect employer shall
If an independent contractorship is not established, the be held responsible with his contractor or subcontractor for any violation
relationship would be regarded as a labor-only arrangement, in of any provision of this Code. For purposes of determining the extent of
which case, the relationship of e-e will be deemed to exist their civil liability under this Chapter, they shall be considered as direct
between the principal and the employees of the contractor employers.
o Exceptions:
1. Joint venture arrangement Purpose: intended to facilitate, if not guarantee, payment of
2. Contract of agency workers wages, including the statutory minimum wage
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Extent of liability of indirect employer: payment of wages a. Claims for laborers wages, on the goods
The solidarity liability of an indirect employer is limited only to manufactured or the work done
the extent of the work performed under the contract b. Claims of laborers, masons, mechanics and other
An indirect employer cannot be held liable for: workmen, as well as architects, engineers and
1. Backwages contractors, engaged in the construction,
2. Separation pay reconstruction or repair of buildings, canals or other
3. Damages arising from the acts or omissions of his works, upon said buildings, canals, or other works.
independent contractor 2. Ordinary preferred credits (Article 2244)
- Create no liens on specific property
The imposition of solidary liability does not preclude an indirect - They simply create rights in favor of certain creditors to
employer from seeking reimbursement from the contractor for have cash and other assets of the insolvent applied in a
whatever amount he pays to the contractors employees. certain consequence or order of priority
3. Common credits (Article 2245)
- Enjoy no preference
ARTICLE 110. Worker preference in case of bankruptcy. In the
event of bankruptcy or liquidation of an employers business, his workers
shall enjoy first preference as regards their wages and other monetary Article 110 does not constitute a lien on the property of the
claims, any provisions of law to the contrary notwithstanding. Such insolvent debtor in favor of workers. It is just a preference of
unpaid wages and monetary claims shall be paid in full before claims of credit in their favor a preference in application.
the government and other creditors may be paid. (As amended by Preference of credits applies only to claims which do not attach
Section 1, Republic Act No. 6715, March 21, 1989). to specific properties, while a lien attaches to a particular
property.
The following monetary claims of workers falling within the ambit
Applies only in case of bankruptcy or judicial liquidation of the
of special preferred credits are to be paid only after the taxes on
employer
the specific property involved have been paid:
Before the workers preference may be invoked, there must first a. Claims for laborers wages, on good manufactured
be a declaration of bankruptcy or judicial liquidation of the or the work done
employers business b. Claims of laborers, masons and other workmen,
Rationale: premised upon the very nature of a preferential right architects, engineers and contractors, engaged in
of credit the construction, reconstruction or repair of
Article 110 does can only be invoked upon the institution of buildings, canals or other works, upon said
insolvency or judicial liquidation proceedings. It does not apply buildings, canals or other works
to rehabilitation proceedings because a company under
rehabilitation continues to operate, hence, its assets are not up Mortgage is a special preferred credits
for distribution to creditors
3 general categories:
ARTICLE 111. Attorneys fees. (a) In cases of unlawful withholding of
1. Special preferred credits (Articles 2241 and 2242 of the CC)
wages, the culpable party may be assessed attorneys fees equivalent to
- Constitute liens or encumbrances on the specific
ten percent of the amount of wages recovered.
property to which they relate
- Must first be discharged out of the proceeds of the
property to which they relate, before ordinary preferred (b) It shall be unlawful for any person to demand or accept, in
creditors may claim to any part of such proceeds any judicial or administrative proceedings for the recovery of
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wages, attorneys fees which exceed ten percent of the amount (b) For union dues, in cases where the right of the worker or his union to
of wages recovered. check-off has been recognized by the employer or authorized in writing
Attorneys fees may be awarded: by the individual worker concerned; and
1. In cases of unlawful withholding of wages
2. In cases where the employee was forced to litigate with third (c) In cases where the employer is authorized by law or regulations
persons or incur expenses to protect his rights and interest issued by the Secretary of Labor and Employment.
Maximum amount of AFs: 10% of the amount of wages Purpose: to protect the employee from unwarranted practices
recovered. 10% may be reduced if it is found to be utterly that diminish his compensation without his knowledge and
excessive and unreasonable or when the questions involved are consent
neither novel nor difficult
Lawful deductions:
AFs need not necessarily be borne by the losing party. It may 1. Insurance premiums
be ordered deducted from the total amount due the winning 2. Unions dues
party. 3. Agency fees (written authorization, not required)
Only lawyers are entitled to AFs. 4. Special assessments or extraordinary fees levied by a CB
- Exception: a lawyer member of the PAO agent against its members
5. Fair and reasonable value of facilities (there must be
Chapter 4 voluntary acceptance by the employee)
PROHIBITIONS REGARDING WAGES 6. Obligations of an employee with a third person (there must
be written authorization)
ARTICLE 112. Non-interference in disposal of wages. No employer 7. Cost of lost or damaged tools, materials or equipment
shall limit or otherwise interfere with the freedom of any employee to supplied by the employer to the employee in trades,
dispose of his wages. He shall not in any manner force, compel, or occupation or business where the practice of making
oblige his employees to purchase merchandise, commodities or other deductions is recognized
property from any other person, or otherwise make use of any store or 8. Due and demandable debt of an employee to his employer
services of such employer or any other person. 9. Deductions made in compliance with writs of execution or
attachment against the employee for debts incurred for
This article stresses the right of an employee to freely dispose of food, shelter, clothing, and medical attendance
his wages. 10. Income tax
11. Employees share in the premium contributions to the SSS
ARTICLE 113. Wage deduction. No employer, in his own behalf or in 12. Employees share in the premium contributions to the
behalf of any person, shall make any deduction from the wages of his National Health Insurance Program; and
employees, except: 13. Employees share in the premium contributions to the Home
Development Mutual Fund
14. Deductions for absence or tardiness (no work, no pay)
(a) In cases where the worker is insured with his consent by the 15. Deductions for cost of uniforms (if requested or with the
employer, and the deduction is to recompense the employer for the consent of the employees. Otherwise, not deductible)
amount paid by him as premium on the insurance;
If the employer does not comply with its obligation to check-off
union dues and agency fees, it cannot be held liable for the
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union dues and agency fees that it failed to deduct from the unless the employee has been heard thereon, and his responsibility has
salaries of the employees. been clearly shown.
The employers failure to make requisite deductions may
constitute a violation of contractual commitment for which it may Conditions for effecting deductions from deposits:
incur liability for ULP. 1. That the employee concerned is clearly shown to be
The authorization to check-off union dues is co-terminus with responsible for the loss
the union affiliation or membership of the employees 2. That the employee is given reasonable opportunity to show
The employees acceptance of benefits resulting from the CBA cause why deduction should not be made
justifies the deduction of agency fees from his salary. 3. That the amount of such deductions is fair and reasonable
3 requisites for a valid check-off of special assessments or other and shall not exceed the actual loss or damage; and
extraordinary expenses: 4. The deduction from the wages of the employee does not
1. Written resolution by a majority of all the members at a exceed 20% of the employees wages in a week.
general membership meeting duly called for the purpose
2. Minutes of the meeting duly recorded by the secretary of the ARTICLE 116. Withholding of wages and kickbacks prohibited. - It
union and attested to by the union president, with a list of all shall be unlawful for any person, directly or indirectly, to withhold any
members present, the votes cast, and the purpose of the amount from the wages of a worker or induce him to give up any part of
special assessment; and his wages by force, stealth, intimidation, threat or by any other means
3. Individual written check-off authorization by the employees whatsoever without the workers consent.
concerned
- Strict compliance is required
Acts prohibited:
1. Withholding any amount from the wages of a worker
ARTICLE 114. Deposits for loss or damage. No employer shall 2. Inducing an employee to give up any part of his wages by
require his worker to make deposits from which deductions shall be force, stealth, intimidation, threat or by any other means
made for the reimbursement of loss of or damage to tools, materials, or without the workers consent
equipment supplied by the employer, except when the employer is
engaged in such trades, occupations or business where the practice of Lawful withholding:
making deductions or requiring deposits is a recognized one, or is 1. To set-off an employees due and demandable debt to the
necessary or desirable as determined by the Secretary of Labor and employer; or
Employment in appropriate rules and regulations. 2. To comply with writs of execution or attachment against the
employee for debts incurred for food, shelter, clothing and
When an employer can require deposits for loss or damage: medical attendance
1. When the employer is engaged in such trades, occupations
or business where the practice of making deductions or ARTICLE 117. Deduction to ensure employment. It shall be
requiring deposits is a recognized one; or unlawful to make any deduction from the wages of any employee for the
2. When necessary or desirable as determined by the benefit of the employer or his representative or intermediary as
Secretary of Labor in appropriate rules and regulations consideration of a promise of employment or retention in employment.
ARTICLE 119. False reporting. It shall be unlawful for any person to The members representing the labor and management shall be
make any statement, report, or record filed or kept pursuant to the appointed by the President of the Philippines upon
provisions of this Code knowing such statement, report or record to be recommendation of the Secretary of DOLE, on the basis of the
false in any material respect. list of nominees submitted by the workers and employers
sectors, for a term of 5 yrs, and shall have the same rank,
emoluments, allowances, and other benefits as those prescribed
Records required of an employer to keep: by law for labor and management representatives in the
1. Payrolls Employees Compensation Commission.
2. Time records of employees
3. Time records of executives
4. Records of workers paid by results ARTICLE 121. Powers and functions of the Commission. The
Commission shall have the following powers and functions:
All employment records of employees shall be kept and
maintained in or about the premises of the workplace, i.e., the (a) To act as the national consultative and advisory body to the
branch office or establishment, where the employees concerned President of the Philippines and Congress on matters relating to wages,
are regularly assigned. incomes and productivity;
NWPC the advisory body to the President of the Philippines (e) To undertake studies, researches and surveys necessary for the
and Congress on matters relating to wages, income, and attainment of its functions and objectives, and to collect and compile
productivity. data and periodically disseminate information on wages and productivity
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and other related information, including, but not limited to, employment, law for labor and management representatives in the Employees
cost-of-living, labor costs, investments and returns; Compensation Commission. (As amended by Republic Act No. 6727,
June 9, 1989).
(f) To review plans and programs of the Regional Tripartite Wages and
Productivity Boards to determine whether these are consistent with The NWPC has the power to prescribe rules and guidelines for
national development plans; the determination of appropriate minimum wage and productivity
measures at regional, provincial or industry levels. It is also
(g) To exercise technical and administrative supervision over the empowered to formulate policies and guidelines on wages,
Regional Tripartite Wages and Productivity Boards; incomes and productivity improvement at the enterprise,
industry and national levels.
(h) To call, from time to time, a national tripartite conference of
representatives of government, workers and employers for the ARTICLE 122. Creation of Regional Tripartite Wages and
consideration of measures to promote wage rationalization and Productivity Boards.- There is hereby created Regional Tripartite
productivity; and Wages and Productivity Boards, hereinafter referred to as Regional
Boards, in all regions, including autonomous regions as may be
(i) To exercise such powers and functions as may be necessary to established by law. The Commission shall determine the
implement this Act. offices/headquarters of the respective Regional Boards.
The Commission shall be composed of the Secretary of Labor and The Regional Boards shall have the following powers and functions in
Employment as ex-officio chairman, the Director-General of the National their respective territorial jurisdictions:
Economic and Development Authority (NEDA) as ex-officio vice-
chairman, and two (2) members each from workers and employers (a) To develop plans, programs and projects relative to wages, incomes
sectors who shall be appointed by the President of the Philippines upon and productivity improvement for their respective regions;
recommendation of the Secretary of Labor and Employment to be made
on the basis of the list of nominees submitted by the workers and (b) To determine and fix minimum wage rates applicable in their regions,
employers sectors, respectively, and who shall serve for a term of five provinces or industries therein and to issue the corresponding wage
(5) years. The Executive Director of the Commission shall also be a orders, subject to guidelines issued by the Commission;
member of the Commission.
(c) To undertake studies, researches, and surveys necessary for the
The Commission shall be assisted by a Secretariatto be headed by an attainment of their functions, objectives and programs, and to collect
Executive Director and two (2) Deputy Directors, who shall be appointed and compile data on wages, incomes, productivity and other related
by the President of the Philippines, upon the recommendation of the information and periodically disseminate the same;
Secretary of Labor and Employment.
(d) To coordinate with the other Regional Boards as may be necessary
The Executive Director shall have the same rank, salary, benefits and to attain the policy and intention of this Code;
other emoluments as that of a Department Assistant Secretary, while the
Deputy Directors shall have the same rank, salary, benefits and other (e) To receive, process and act on applications for exemption from
emoluments as that of a Bureau Director. The members of the prescribed wage rates as may be provided by law or any Wage Order;
Commission representing labor and management shall have the same and
rank, emoluments, allowances and other benefits as those prescribed by
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(f) To exercise such other powers and functions as may be necessary to Minimum wage fixing is a function of the RTWPB
carry out their mandate under this Code. RTWPB has no power to promulgate rules and guidelines for
the determination of appropriate minimum wage and productivity
Implementation of the plans, programs, and projects of the Regional measures.
Boards referred to in the second paragraph, letter (a) of this Article, shall
be through the respective regional offices of the Department of Labor ARTICLE 123. Wage Order. Whenever conditions in the region so
and Employment within their territorial jurisdiction; Provided, however, warrant, the Regional Board shall investigate and study all pertinent
That the Regional Boards shall have technical supervision over the facts; and based on the standards and criteria herein prescribed, shall
regional office of the Department of Labor and Employment with respect proceed to determine whether a Wage Order should be issued. Any
to the implementation of said plans, programs and projects. such Wage Order shall take effect after fifteen(15) days from its
complete publication in at least one (1) newspaper of general circulation
Each Regional Board shall be composed of the Regional Director of the in the region.
Department of Labor and Employment as chairman, the Regional
Directors of the National Economic and Development Authority and the In the performance of its wage-determining functions, the Regional
Department of Trade and Industry as vice-chairmen and two (2) Board shall conduct public hearings/consultations, giving notices to
members each from workers and employers sectors who shall be employees and employers groups, provincial, city and municipal officials
appointed by the President of the Philippines, upon the recommendation and other interested parties.
of the Secretary of Labor and Employment, to be made on the basis of
the list of nominees submitted by the workers and employers sectors, Any party aggrieved by the Wage Order issued by the Regional Board
respectively, and who shall serve for a term of five (5) years. may appeal such order to the Commission within ten (10) calendar days
from the publication of such order. It shall be mandatory for the
Each Regional Board to be headed by its chairman shall be assisted by Commission to decide such appeal within sixty (60) calendar days from
a Secretariat. the filing thereof.
(As amended by Republic Act No. 6727, June 9, 1989).
The filing of the appeal does not stay the order unless the person
RTWPB composition: appealing such order shall file with the Commission, an undertaking with
a. Chairman regional director of the DOLE a surety or sureties satisfactory to the Commission for the payment to
b. Vice-chairman regional director of the NEDA the employees affected by the order of the corresponding increase, in
- Regional director of DTI the event such order is affirmed. (As amended by Republic Act No.
c. Members 2 from the workers sector 6727, June 9, 1989).
- 2 from the employers sector
A wage order takes effect after 15 days from its complete
Representatives of the workers and employers sector shall be publication in at least 1 newspaper of general circulation in the
appointed by the President of the Philippines upon region
recommendation of the Secretary of DOLE, and shall serve a Any party aggrieved by the Wage Order may appeal such order
term of 5 yrs to the NWPC within 10 calendar days from publication of such
The RTWPB exercises technical supervision over the regional order.
office of the DOLE with respect to the implementation of plans,
programs and projects relative to wages, incomes and
ARTICLE 124. Standards/Criteria for minimum wage fixing. The
productivity improvement for their respective regions.
regional minimum wages to be established by the Regional Board shall
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be as nearly adequate as is economically feasible to maintain the itemized listing of their labor component, specifying the names of their
minimum standards of living necessary for the health, efficiency and workers and employees below the managerial level, including learners,
general well-being of the employees within the framework of the national apprentices and disabled/handicapped workers who were hired under
economic and social development program. In the determination of such the terms prescribed in the employment contracts, and their
regional minimum wages, the Regional Board shall, among other corresponding salaries and wages.
relevant factors, consider the following:
Where the application of any prescribed wage increase by virtue of a
(a) The demand for living wages; law or wage order issued by any Regional Board results in distortions of
the wage structure within an establishment, the employer and the union
(b) Wage adjustment visvis the consumer price index; shall negotiate to correct the distortions. Any dispute arising from wage
distortions shall be resolved through the grievance procedure under
their collective bargaining agreement and, if it remains unresolved,
(c) The cost of living and changes or increases therein;
through voluntary arbitration. Unless otherwise agreed by the parties in
writing, such dispute shall be decided by the voluntary arbitrators within
(d) The needs of workers and their families; ten (10) calendar days from the time said dispute was referred to
voluntary arbitration.
(e) The need to induce industries to invest in the countryside;
In cases where there are no collective agreements or recognized labor
(f) Improvements in standards of living; unions, the employers and workers shall endeavor to correct such
distortions. Any dispute arising therefrom shall be settled through the
(g) The prevailing wage levels; National Conciliation and Mediation Board and, if it remains unresolved
after ten (10) calendar days of conciliation, shall be referred to the
(h) Fair return of the capital invested and capacity to pay of employers; appropriate branch of the National Labor Relations Commission (NLRC).
It shall be mandatory for the NLRC to conduct continuous hearings and
decide the dispute within twenty (20) calendar days from the time said
(i) Effects on employment generation and family income; and
dispute is submitted for compulsory arbitration.
(j) The equitable distribution of income and wealth along the imperatives
The pendency of a dispute arising from a wage distortion shall not in any
of economic and social development.
way delay the applicability of any increase in prescribed wage rates
pursuant to the provisions of law or wage order.
The wages prescribed in accordance with the provisions of this Title
shall be the standard prevailing minimum wages in every region. These
As used herein, a wage distortion shall mean a situation where an
wages shall include wages varying with industries, provinces or localities
increase in prescribed wage rates results in the elimination or severe
if in the judgment of the Regional Board, conditions make such local
contraction of intentional quantitative differences in wage or salary rates
differentiation proper and necessary to effectuate the purpose of this
between and among employee groups in an establishment as to
Title.
effectively obliterate the distinctions embodied in such wage structure
based on skills, length of service, or other logical bases of differentiation.
Any person, company, corporation, partnership or any other entity
engaged in business shall file and register annually with the appropriate
All workers paid by result, including those who are paid on piecework,
Regional Board, Commission and the National Statistics Office, an
takay, pakyaw or task basis, shall receive not less than the prescribed
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wage rates per eight (8) hours of work a day, or a proportion thereof for 3. If the grievance machinery fails to settle the dispute, the
working less than eight (8) hours. matter shall be threshed out through voluntary
arbitration
All recognized learnership and apprenticeship agreements shall be
considered automatically modified insofar as their wage clauses are b. In Non-Unionized Establishment:
concerned to reflect the prescribed wage rates. (As amended by 1. The employers and the workers shall negotiate to
Republic Act No. 6727, June 9, 1989). correct such distortions
2. If negotiations fail, the matter shall be brought to the
NCMB for conciliation
Wage distortion
3. If condition fails, the dispute shall be referred to the
- A situation where an increase in the prescribed wage rates
appropriate branch of the NLRC for compulsory
results in the elimination or severe contraction of intentional
arbitration
quantitative differences in wage or salary rates between and
among employee groups in an establishment as to effectively
obliterate the distinctions embodied in such wage structure Employers are obliged to file and register annually with the
appropriate RTWPB, NWPC and the NSO an itemized listing of
based on skills, length of service, or other logical bases of
their workers and employees below the managerial level,
differentiation
including learners, apprentices, and disabled/handicapped
- For wage distortion to exist, severe contraction is enough
workers and their corresponding salaries and wages.
- It presupposes an increase in the compensation of the lower
ranks in an office hierarchy without a corresponding raise for
ARTICLE 125. Freedom to bargain. No wage order shall be
higher-tiered employees in the same region of the country,
construed to prevent workers in particular firms or enterprises or
resulting in the elimination or the severe contradiction of the
industries from bargaining for higher wages with their respective
distinction between the two groups.
employers.
(As amended by Republic Act No. 6727, June 9, 1989).
Elements:
a. An existing hierarchy of positions with corresponding salary
As a matter of policy, the State promotes collective bargaining
rates
as the primary mode of settling wages and other terms and
b. A significant change in the salary arte of a lower pay class
conditions of employment.
without a concomitant increase in the salary rate of a higher
one
c. The elimination or severe contraction of the distinction ARTICLE 126. Prohibition against injunction. No preliminary or
between the two levels; and permanent injunction or temporary restraining order may be issued by
d. The existence of the distortion in the same region of the any court, tribunal or other entity against any proceedings before the
country Commission or the Regional Boards. (As amended by Republic Act No.
6727, June 9, 1989).
Procedure for correction of Wage Distortion:
a. In Unionized Establishments: Reason: to enable the NWPC and the RTWPB to discharge
1. The employer and the union shall negotiate to correct their functions smoothly, particularly in wage fixing which
the distortions deserves preferential consideration.
2. If the negotiations fail, the matter shall be brought to the
grievance machinery under their CBA
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ARTICLE 127. Non-diminution of benefits. No wage order issued by course of inspection. (As amended by Republic Act No. 7730, June 2,
any regional board shall provide for wage rates lower than the statutory 1994).
minimum wage rates prescribed by Congress. (As amended by Republic
Act No. 6727, June 9, 1989). An order issued by the duly authorized representative of the Secretary
of Labor and Employment under this Article may be appealed to the
The power of the RTWPB to determine and fix minimum wage is latter. In case said order involves a monetary award, an appeal by the
a mere delegated power, and therefore, it should be exercised employer may be perfected only upon the posting of a cash or surety
within the limits of its authority. bond issued by a reputable bonding company duly accredited by the
It cannot set a wage rate lower than that prescribed by Secretary of Labor and Employment in the amount equivalent to the
Congress monetary award in the order appealed from. (As amended by Republic
It can, however, order that the minimum wages fixed by it be Act No. 7730, June 2, 1994).
extended not only to minimum wage earners but also to those
who are already receiving more than the minimum up to sa (c) The Secretary of Labor and Employment may likewise order
certain denominated ceiling. stoppage of work or suspension of operations of any unit or department
of an establishment when non-compliance with the law or implementing
Chapter 6 rules and regulations poses grave and imminent danger to the health
ADMINITRATION AND ENFORCEMENT and safety of workers in the workplace. Within twenty-four hours, a
hearing shall be conducted to determine whether an order for the stop
ARTICLE 128. Visitorial and enforcement power.- (a) The Secretary page of work or suspension of operations shall be lifted or not. In case
of Labor and Employment or his duly authorized representatives, the violation is attributable to the fault of the employer, he shall pay the
including labor regulation officers, shall have access to employers employees concerned their salaries or wages during the period of such
records and premises at any time of the day or night whenever work is stoppage of work or suspension of operation.
being undertaken therein, and the right to copy therefrom, to question
any employee and investigate any fact, condition or matter which may (d) It shall be unlawful for any person or entity to obstruct, impede, delay
be necessary to determine violations or which may aid in the or otherwise render ineffective the orders of the Secretary of Labor and
enforcement of this Code and of any labor law, wage order or rules and Employment or his duly authorized representatives issued pursuant to
regulations issued pursuant there to. the authority granted under this Article, and no inferior court or entity
shall issue temporary or permanent injunction or restraining order or
(b) Notwithstanding the provisions of Articles 129 and 217 of this Code otherwise assume jurisdiction over any case involving the enforcement
to the contrary, and in cases where the relationship of employer- orders issued in accordance with this Article.
employee still exists, the Secretary of Labor and Employment or his duly
authorized representatives shall have the power to issue compliance (e) Any government employee found guilty of violation of, or abuse of
orders to give effect to the labor standards provisions of this Code and authority, under this Article shall, after appropriate administrative
other labor legislation based on the findings of labor employment and investigation, be subject to summary dismissal from the service.
enforcement officers or industrial safety engineers made in the course of
inspection. The Secretary or his duly authorized representatives shall (f) The Secretary of Labor and Employment may, by appropriate
issue writs of execution to the appropriate authority for the enforcement regulations, require employers to keep and maintain such employment
of their orders, except in cases where the employer contests the findings records as may be necessary in aid of his visitorial and enforcement
of the labor employment and enforcement officer and raises issues powers under this Code.
supported by documentary proofs which were not considered in the
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Powers of the Secretary of Labor and Employment: 1. Motion for reconsideration , to be filed within 7 calendar days
1. Visitorial Power from receipt of the order
2. Enforcement Power 2. Appeal to the Secretary of DOLE, to be filed within 10 calendar
3. Power to order suspension or stoppage of operations for days from receipt of the order
failure to comply with health and safety standards. - A motion for reconsideration filed beyond the 7-day
reglementary period shall be treated as an appeal if filed within
The Visitorial Power: the 10-day period for appeal, but subject to the requirements for
a. Inspect the records and premises of an employer the perfection of an appeal.
b. Copy pertinent records or documents
c. Question any employee; and Limitations on the exercise of enforcement power:
d. Investigate any fact, condition or matter for the purpose of 1. Contest the findings of the LSWO
determining whether an employer is complying with labor 2. Raise issues supported by documentary proofs which were
standards not considered in the course of inspection
- The visitorial power can be exercised at any time of the day or
night, whether work is being undertaken therein. Visitorial and Enforcement powers are not restricted by the
- It can be done on a routine bases, i.e., routine inspection or amount involved.
upon request of an employee, i.e., complaint inspection
Power to order suspension or stoppage of operations
The Enforcement Power - Exercised where the condition obtaining in the workplace pose
- To issue compliance orders on the basis of findings of Labor grave and imminent danger to the health and safety of workers
Standards and Welfare Officers (LSWO) made in the course of in the workplace
inspection, that violation of labor standards has been committed. - In imminent danger cases, the employer may make the
- Writs of execution may be issued to enforce their orders necessary rectification at the plant-level within 24 hours from the
- Intended to provide the workers to immediate access to their date of inspection
rights and benefits without being inconvenienced by arbitration - In non-imminent danger cases, the LSWO shall determine the
or litigation processes that prove to be not only nerve-wracking reasonable period of compliance depending on the gravity of the
but financially burdensome in the long run. hazards.
- Within 24 hrs from the issuance of the order, a hearing shall be
The visitorial and enforcement powers given to the Secretary of conducted with the assistance of the LSWO concerned to
DOLE or his duly authorized representatives is relevant to and determine whether the order shall be lifter or not.
exercisable over establishments, not over individual employees - The proceedings shall be terminated within 72 hours and a copy
because what is sought to be achieved by its exercise is the of the order of resolution shall be immediately furnished the
observance of, and/or compliance by, such establishment with Secretary of DOLE
labor standards laws and regulations. - If the stoppage or suspension is attributable to the fault of the
In case of an award rendered in the exercise of visitorial and employer, the employees are entitled to their salaries or wages
enforcement powers, the entire employees who are still working during the period of such suspension of operations.
with said establishments should benefit therefrom even if they
did not sign the complaint or request for inspection. ARTICLE 129. Recovery of wages, simple money claims and other
benefits. Upon complaint of any interested party, the Regional
Remedies: Director of the Department of Labor and Employment or any of the duly
authorized hearing officers of the Department is empowered, through
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summary proceeding and after due notice, to hear and decide any Requisites:
matter involving the recovery of wages and other monetary claims and 1. The claim is purely for recovery of unpaid wages and other
benefits, including legal interest, owing to an employee or person monetary claims and benefits
employed in domestic or household service or househelper under this 2. The claim is filed by an employee, househelper or person
Code, arising from employer-employee relations: Provided, That such employed on domestic or household service
complaint does not include a claim for reinstatement: Provided further, 3. The employee, househelper or person employed in
That the aggregate money claims of each employee or househelper domestic or household service has already been separated
does not exceed Five thousand pesos (P5,000.00). The Regional from service and does not seek reinstatement anymore
Director or hearing officer shall decide or resolve the complaint within 4. The aggregate money claims of each claimant does not
thirty (30) calendar days from the date of the filing of the same. Any sum exceed 5k
thus recovered on behalf of any employee or househelper pursuant to - If the following requisites are not complied with, the case will fall
this Article shall be held in a special deposit account by, and shall be within the exclusive jurisdiction of the Arbitration Branch of the
paid on order of, the Secretary of Labor and Employment or the NLRC.
Regional Director directly to the employee or househelper concerned.
Any such sum not paid to the employee or househelper because he Remedy:
cannot be located after diligent and reasonable effort to locate him - Appeal to the NLRC within 5 calendar days from receipt of the
within a period of three (3) years, shall be held as a special fund of the decision
Department of Labor and Employment to be used exclusively for the
amelioration and benefit of workers. Adjudicatory Enforcement
Power Power
Any decision or resolution of the Regional Director or hearing officer Basis Complaint filed by Inspection result
pursuant to this provision may be appealed on the same grounds the employee
provided in Article 223 of this Code, within five (5) calendar days from Subject Pure money Extends to
receipt of a copy of said decision or resolution, to the National Labor matter claims violations of
Relations Commission which shall resolve the appeal within ten (10) occupational health
calendar days from the submission of the last pleading required or and safety
allowed under its rules. standards
Workers Only to employees Only to employees
The Secretary of Labor and Employment or his duly authorized involved who have already who are still in
representative may supervise the payment of unpaid wages and other been separated service
monetary claims and benefits, including legal interest, found owing to from service and
any employee or househelper under this Code. (As amended by Section do not seek
2, Republic Act No. 6715, March 21, 1989). reinstatement
Amount Not exceeding 5k Not limited by
Article 129 confers upon the Regional Director of the DOLE the involved amount involved
authority to hear and decide claims for unpaid wages and other Appellate NLRC Secretary of DOLE
monetary claims and benefits filed by an employee or person body
employed in domestic or household service, whose employment Period to Within 5 calendar Within 10 calendar
has been and doers not seek reinstatement anymore. appeal days from receipt days from receipt
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Book Four: Health, Safety and Social Welfare Benefits The services of a full-time registered nurse, a part-time physician
Title I: Medical, Dental and Occupational Safety and dentist, and an emergency clinic, when the number of
Chapter I: Medical and Dental Services employees exceeds two hundred (200) but not more than three
Art. 156. First-aid treatment: Every employer shall keep in his hundred (300); and
establishment such first-aid medicines and equipment as the
nature and conditions of work may require, in accordance with The services of a full-time physician, dentist and a full-time
such regulations as the Department of Labor and Employment registered nurse as well as a dental clinic and an infirmary or
shall prescribe. emergency hospital with one bed capacity for every one hundred
The employer shall take steps for the training of a sufficient (100) employees when the number of employees exceeds three
number of employees in first-aid treatment. hundred (300).
In cases of hazardous workplaces, no employer shall engage the
1. First Aid Treatment services of a physician or a dentist who cannot stay in the
Adequate, immediate and necessary medical and dental premises of the establishment for at least two (2) hours, in the case
attention or remedy given in case of injury or sudden illness of those engaged on part-time basis, and not less than eight (8)
suffered by a worker during employment, irrespective of hours, in the case of those employed on full-time basis. Where the
whether or not such injury or illness is work-connected undertaking is non-hazardous in nature, the physician and dentist
before more extensive medical and/or dental treatment can may be engaged on retainer basis, subject to such regulations as
be secured. the Secretary of Labor and Employment may prescribe to insure
Does not include continued treatment or follow-up immediate availability of medical and dental treatment and
treatment. attendance in case of emergency. (As amended by Presidential
Decree NO. 570-A, Section 26)
2. Scope of the Law
The obligation to keep first aid medicines, equipment and 1. The Required Medical and Dental Services
facilities applies to all employers, regardless of the number Shall depend upon the number of employees and the nature of
of employees they employ. the workplace.
Art. 157. Emergency medical and dental services. It shall be the 10 to 50 workers - Graduate First aider
duty of every employer to furnish his employees in any locality 51 to 200 workers - Full-time registered
with free medical and dental attendance and facilities consisting of: nurse (A full-time first aider will suffice if workplace is non-
The services of a full-time registered nurse when the number of hazardous and a nurse is not available)
employees exceeds fifty (50) but not more than two hundred (200) 201 to 300 workers - full-time registered
except when the employer does not maintain hazardous nurse
workplaces, in which case, the services of a graduate first-aider - Part-time
shall be provided for the protection of workers, where no physician
registered nurse is available. The Secretary of Labor and - Part-time
Employment shall provide by appropriate regulations, the services dentist
that shall be required where the number of employees does not - Emergency
exceed fifty (50) and shall determine by appropriate order, clinic (regardless of nature of undertaking)
hazardous workplaces for purposes of this Article; Over 300 workers
o Hazardous Workplace - Full-time
registered nurse
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- Full-time physician Art. 158. When emergency hospital not required. The requirement
for an emergency hospital or dental clinic shall not be applicable in
- Full-time dentist case there is a hospital or dental clinic which is accessible from
- Dental Clinic the employers establishment and he makes arrangement for the
- Infirmary or reservation therein of the necessary beds and dental facilities for
emergency hospital with 1 bed capacity for every 100 the use of his employees.
workers
1. Alternative to an Emergency Hospital or Dental Clinic
o Non-hazardous Workplace - Full-time registered An employer need not put up an emergency hospital
nurse or dental clinic in the workplace if:
- Part-time o There is a hospital or dental clinic withing a 5
physician km radius away from the workplace in an
- Part-time urban area; or one which can be reached by
dentist motor vehicle within 25 mins of travel if
workplace located in a rural area;
2. Concept of Part-time Service o The employer has facilities readily available
At least 2 hours stay in the premised in a day. to transport a worker in case of an
If establishment has more than 1 workshift, 2-hour stay shall emergency;
be devoted to the workshift with greater number of workers, o Employer has a written contract with the
subject however to call during other shifts in case of hospital or dental clinic for the use thereof in
emergency. the treatment of workers in case of an
emergency
3. Concept of Full-time Service This does not relieve an employer from maintaining
At least 8 hours stay in the premises in a day. (Subject to an emergency treatment room.
the same qualification as Part-time service in case of
multiple workshifts in a day) Art. 159. Health program. The physician engaged by an employer
shall, in addition to his duties under this Chapter, develop and
4. Hazardous Workplace implement a comprehensive occupational health program for the
Nature of the work exposes the workers to dangerous benefit of the employees of his employer.
environmental elements, contaminants or work 1. Objectives of an Occupational Health Program
conditions including ionizing radiation, chemicals, fire, The main objectives of an occupational health program are:
flammable substances, noxious components and the a. Assess the workers physical, emotional and
like; psychological assets as well as his liabilities in order
Construction work, logging, firefighting, mining, quarrying, to facilitate his proper placement and ensure the
blasting, stevedoring, dock work, deep sea fishing and suitability of individuals according to their physical
mechanical farming; capacities, mental abilities and emotional make-up in
Manufacture or handling of explosive and other work which they can perform with an acceptable
pyrotechnical products; degree of efficiency without endangering their own
Use or exposed to heavy or power-driven machinery or health and safety and that of their co-workers;
equipment;
Workers use or are exposed to power-driven tools.
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b. Protect employees against health hazards in their work practices, use and maintenance of available
working environment in order to prevent occupational personal protective clothing and devices, and the use
as well as non-occupational diseases; of available health services and facilities; and
c. Provision for first-aid, emergency services and g. Nutrition program which shall be under the dietician
treatment depending on the nature of the industry; and supervised by a physician if the latter is present.
d. Assure adequate medical care of ill and injured
workers; 2. Duties of a Company Physician
e. Encourage personal health maintenance and Aside from providing an emergency medical service, a
physical fitness and proper nutrition practices; and company physician is bound to perform the following duties:
f. Provide guidance, information and services for family a. Conduct pre-employment medical exam for free, for
planning programs. the proper selection and placement of workers;
The Health Program shall include the following activities: b. Conduct annual physical examination of workers for
free;
a. Maintenance of a healthful work environment by c. Collaborate closely with the safety and technical
requiring occupational health personnel to conduct personnel of the establishment to assure selection
regular appraisal of sanitation conditions, periodic and placement of workers from the standpoint of
inspection of premises, including all facilities therein, physical, mental, physiological and psychological
and evaluate the working environment in order to suitability, including investigation of accidents where
detect and appraise occupational health hazards and the probable causes are exposure to occupational
environmental conditions affecting comfort and job health hazards;
efficiency; d. Develop and implement a comprehensive
b. Health Examinations: Entrance; Periodic; Special occupational health and safety program for the
examination; Transfer examination; Separation employees of the establishment. An annual report
examination. describing the health program and the
c. Diagnosis and treatment of all injuries and implementation thereof should be submitted to the
occupational and non-occupational diseases; Bureau of Working Conditions;
d. Immunization programs; and e. Continually monitor the work environment for health
e. Accurate and complete medical records of each hazards through periodic inspection of the
worker starting from his first examination or workplace;
treatment, which must be under the exclusive f. Prevent diseases or injury in the workplace by
custody and control of the occupational health establishing proper medical supervision over
personnel. Such records shall be made available to substances used, processes, and work environment;
the worker or his duly authorized representative and g. Conserve the health of the workers through physical
~ not be used for discriminatory purpose or in any examinations, proper advice for placement and
other manner prejudicial to his interest. health education;
f. Health Education and Counseling in which the h. Provide medical and surgical care to restore health
occupational health and safety personnel shall and earning capacity of injured workers;
cooperate with the supervisors in imparting i. Maintain and analyze records of all medical cases
appropriate health and safety information to and to prepare and submit to the employer annual
employees, such as health hazards and proper medical reports, using form DOLE/BWC/OH-47, as
precautions, habits of cleanliness, orderliness, safe required by this Standards;
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j. Conduct studies on occupational health within his b. Participate in the maintenance of occupational
means and resources; safety and health programs, if a member of the
k. Act as adviser to management and labor on all Safety Committee; and
health matters; c. Maintain medical services and facilities.
l. And report directly to top management in order to be
effective. 6. Duties of the Employer
With regard to occupational health, these are the duties of
3. Duties of the Company Nurse the employer:
The duties and functions of the nurse are as follows: a. Establish in his workplace occupational. health
a. In the absence of a physician, to organize and services to provide a healthful place of work;
administer a health service program integrating b. Adopt and implement a comprehensive health
occupational safety, otherwise, these activities of the program for his workers;
nurse shall be in accordance with the physician; c. Enter into a contract with hospitals or dental clinics, if
b. Provide nursing care to injured or ill workers; these are not available in his workplace; and
c. Participate in health maintenance examination. If a d. Maintain a health record of his programs and
physician is not available, to perform work activities activities and submit an annual medical report, using
which are within the scope allowed by the nursing form DOLE/BWC/HSD/OH-47, to the Regional Labor
profession, and if more extensive examinations are Office concerned, copy furnished the Bureau of
needed, to refer the same to a physician; Working Conditions on or before the last day of
d. Participate in the maintenance of occupational health March of the year following the covered period.
and safety by giving suggestions in the improvement
of working environment affecting the health and well- 7. Physical Examination
being of the workers; and All workers, irrespective of age and sex, shall undergo a
e. Maintain a reporting and records system, and, if a. complete and thorough physical examination, free of charge:
physician is not available, prepare and submit an a. before entering employment for the first time;
annual medical report, using form b. periodically, or at such intervals as may be
DOLE/BWC/HSD/OH-47, to the employer, as necessary on account of the conditions or risks
required by this Standards. involved in the work;
c. when transferred or separated from employment;
4. Duties of the Company Dentist and
These shall be in accordance with the Standards prescribed d. when injured or ill.
by the Bureau of Dental Health Services of the Department Purpose of Pre-employment Physical Examination:
of Health. To determine the physical condition of the
prospective employee at the time of hiring
5. Duties of the Company First Aider To prevent the placement of a worker on a job
a. Give immediate temporary treatment in case of injury where, through some physical or mental defects, he
or illness, before the services of a physician may be dangerous to his fellow workers or to
becomes available. If the case needs a physician the property.
first-aider shall immediately call or refer the injured to Only persons who are medically fit shall be
one; employed in occupations where the risk to health of
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workers is due to toxic substances they handle, or of Bureau of Working Conditions may require from time
the work environment. to time.
Periodic Annual Medical Examinations:
Conducted in order to follow-up previous findings Art. 160. Qualifications of health personnel The physicians,
To allow early detection of occupational and non- dentists and nurses employed by employers pursuant to this
occupational diseases Chapter shall have the necessary training in industrial medicine
To determine the effect of exposure to health and occupational safety and health. The Secretary of Labor and
hazards. Employment, in consultation with industrial, medical, and
When occupational diseases have been detected occupational safety and health associations, shall establish the
and the continued employment of the worker may qualifications, criteria and conditions of employment of such
jeopardize his health his employment shall be health personnel.
discontinued until after his recovery. 1. Minimum Qualifications of Health Personnel
If circumstances so permit, worker may be given a. First Aider
some other job consistent with his state of health and i. Able to read and write;
which will not impede or retard his recovery. ii. Completed a course in first aid;
Special Examinations iii. Duly certified by the Philippine National Red
Required if there is undue exposure to health Cross or by any other org accredited by the
hazards, such as lead, mercury, hydrogen sulfide, same
sulfur dioxide, nitroglycerin, nitroglycol, and other b. Nurse
similar substances. i. Must have passed the exam given by Board
of Examiners (board exams)
Return to Work Examination ii. Duly licensed to practice nursing in the
Conducted to detect if the worker is still contagious Philippines
and to determine if the worker is fit to return to work. iii. With at least 50 hours of training in
Workers hired for a specific job shall not be transferred to occupation nursing conducted by the DOH,
another until they have been examined by the physician and the Institute of Public Health of UP, or by any
certified that such transfer is medically advisable. organization accredited by the former.
An employee leaving the company shall be examined by the c. Physician
physician: i. Must have passed the Board Exams;
ii. Licensed to practice medicine in the Phils;
to determine if he is suffering from an occupational
iii. A graduate of a training course in
disease, or
occupational medicine conducted by the
to determine whether he is suffering from any injury
Bureau of Working Conditions, the Institute
or illness not completely healed, or
of Public Health of UP, or any duly
to determine whether he has sustained an injury accredited organization
d. Dentist
8. Medical and Dental Records i. Passed the Board Exams;
Maintain a record of all medical examinations, ii. Licensed to practice dentistry in the Phils;
treatments and medical activities undertaken, and iii. Completed a training course in Dental
submit reports containing such information as the Services of the DOH or organization duly
accredited by the former.
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2. If number of workers in hazardous workplace >2,000 (or problem of pollution in establishments or
if non-hazardous workplace; >3,000 workers): higher workplaces falling under Mining Industry as
degree of qualification such as diploma or Masters degree classified by the NEDA.
on Occupational Health or Industrial Health or its equivalent 3. Duty to Observe Safety and Health Standards
is required. a. Duty of Employers:
Art. 161. Assistance of employer It shall be the duty of any i. Keep and maintain workplace free from work
employer to provide all the necessary assistance to ensure the hazards likely to cause physical harm to
adequate and immediate medical and dental attendance and workers or damage to property;
treatment to an injured or sick employee in case of emergency. ii. Give complete job safety instructions to all his
1. Duty to Provide Assistance: workers, especially to those entering the job for
Provide free emergency medical and dental services and the first time, including those relating to the
facilities. (Self explanatory provision) familiarization with their work environment,
Chapter II hazards to which the workers are exposed to
OCCUPATIONAL HEALTH AND SAFETY and steps taken in case of emergency;
Art. 162. Safety and health standards. The Secretary of Labor and iii. Provide only approved devices and equipment
Employment shall, by appropriate orders, set and enforce in his workplace.
mandatory occupational safety and health standards to eliminate b. Duty of Employees:
or reduce occupational safety and health hazards in all workplaces i. Cooperate with their employer in carrying out
and institute new, and update existing, programs to ensure safe the occupational safet and health standards;
and healthful working conditions in all places of employment. ii. Report to the supervisor any work hazard they
1. Purpose of the Law may discover in the workplace;
To protect every worker against the dangers of iii. Make proper use of all safeguards and safety
injury, sickness or death through safe and healthy devices furnished to them by their employer.
working conditions, thereby assuring the c. Duty of Third Parties:
conservation of valuable manpower resources and Any person, including builders or contractors, who visits,
the prevention of loss or damage to lives and builds, innovates or installs devices in establishments or
properties. workplaces shall comply with the provisions of this Rule
2. Coverage and all regulations issued by the employer in
Covers all establishments, workplaces and other compliance with the provisions of this Rule and other
undertakings, including agricultural enterprises, subsequent issuances of the Secretary of Labor and
whether operating for profit or not. Employment.
Exceptions: 4. Suspension of Rules
o Engaged in land, sea and air transportation, Any part of these Rules may be temporarily suspended by the
except their garages, dry-docks, hangars, Secretary of Labor upon application of employer for the
maintenance and repair shops and offices; following reasons: (Suspension shall not be longer than the
o Residential places exclusively devoted to period needed by the employer to comply with the rule, or 1
dwelling purposes; and year, whichever is shorter, renewable for 1 more year, subject to
o Activities of a lessee regarding safety of revocation or shortening by the Secretary)
mining installations, surface or underground, a. Unavailability of professional or technical personnel or
within the mining claim or lease, including material and equipment needed to comply with the rule;
mine safety, mineral conservation and
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b. Necessary construction or alteration of the prescribed vi. Provides necessary assistance to government
facilities cannot be completed on the effectivity date of inspecting authorities in the proper conduct of
the rule; their activities such as the enforcement of the
c. If the employer is participating in experiments or studies provisions of this Standards.
approved or conducted by the Bureau of Working vii. Initiates and supervises safety training for
Conditions designed to demonstrate new techniques to employees.
safeguard the safety and health or workers. b. Types of Safety Committees:
5. Variation Order Type A Total workforce of over 400 workers.
If there shall be practical difficulty or unnecessary hardship in Composed of the following:
complying with the requirements of any rule or provision of this Chairman The manager or his authorized
Standards, the Secretary, upon the recommendation of the representative who must be a top
Director, may issue an order allowing a variation in complying operating official
with such requirements, provided that the purpose of such rule Members Two Department heads
or provision is substantially served and the safety and health of 8 2 workers
the workers remain ensured. 8 The Company Physician
Secretary The Safety Man
A variation order shall stipulate the conditions under which the
variation is permitted and shall be applicable and effective only Type B Total workforce of 201 to 400 workers.
to the particular employer and operations covered by the Order. Chairman - The
A variation order shall remain in effect until revoked by the Manager or his duly authorized
Secretary. representative who
must be a top
6. Safety Committee recruiting official
All establishments are required to have a Safety Committee, Members - 1
organized within 1 month from the date the business starts supervisor
and must reorganize every January of each year. - 1
a. Duties of the Safety Committee: worker (must be union member, if
i. Plans and develops accident prevention organized)
programs for the establishment. -
ii. Directs the accident prevention efforts of the Company physician or company
establishment in accordance with the safety nurse
programs safety performance and government Secretary - The
regulations in order to prevent accidents from Safety Man
occurring in the workplace. Type C 100 to 200 workers; composed of:
iii. Conducts safety meetings at least once a Chairman - The
month. manager or authorized
iv. Reviews reports of inspection, accident representative
investigations and implementation of program. Members - 1
v. Submits reports to the manager on its meetings Foreman
and activities.
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- 1 with specialized personnel employed to advise
worker (Union member, if and assist management in all matters of safety.
organized) Said personnel are responsible to the top
Secretary - To be executive exercising staff functions, serve all
appointed by the Chairman departments in an advisory capacity and
Type D less than 100 workers; composed of: supervise the application of the health and
Chairman - safety program in the workplace.
Manager d. Term of Office:
Members - 1 Chairman, physician or nurse and the secretary shall be
Foreman permanent members of the Safety Committee.
- 1 Term of office of the department head in the Safety
worker (Union, if organized) Committee shall be for 1 year.
Secretary - To be In Types A and B, terms of the worker-members shall 2
appointed by the Chairman years each.
Type E (Joint Committee) Safety Committees of In Types C, D and E, terms of the worker-members
different establishments housed under one building; shall be 1 year each.
composed of: In Type E safety committee, term of office of the
Chairman - Chairman, and the members shall be 1 year.
Chairman of an established Membership in the Joint Committee shall be rotated
among members of the safety committees in other
committee establishments.
Members - 2 7. The Safety Man
supervisors from 2 different To act as the employers principal assistant and consultant in
establishments the application of programs to remove the hazards from the
1
Secretary - To be workplace and to correct unsafe work practices.
appointed by the Chairman Safety Man has the following duties:
c. Other types of Safety Organizations: a. Serves as Secretary to the Health and Safety
Subject to the approval of Secretary of Labor and Committee. As such, he shall:
Employment or his duly appointed representative. i. prepare minutes of meetings;
i. Line Type A form of organization where the ii. report status of recommendations made;
general manager or head of the establishment iii. notify members of the meetings; and
directs the health and safety programs and iv. submit to the employer a report of the activities
assumes overall responsibility for the safety in of the committee, including recommendations
the establishment. He in turn delegates the made.
application of health and safety programs to b. Acts in an advisory capacity on all matters pertaining to
plant personnel occupying line positions. health and safety for the guidance of the employer and
ii. Staff Type Staff safety organization or safety the workers.
engineer type consists of a line organization c. Conducts investigation of accidents as member of the
Health and Safety Committee and submits his separate
'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
1$In$high*rise$buildings,$the$secretary$of$the$joint$committee$is$the$Building$
report and analysis of accidents to the employer.
Administrator$
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d. Coordinates all health and safety training programs for hours after occurrence using the fastest available
the employees and employer. means of communication.
e. Conducts health and safety inspection as member of c. All deaths and permanent total disabilities shall be
the committee. investigated by the Regional Office or duly authorized
f. Maintains or helps in the maintenance of an efficient representative within forty eight (48) hours after receipt
accident record system and coordinates actions taken of the initial report of the employer, prepared in
by supervisors to eliminate accident causes. duplicate using the prescribed form DOLE/
g. Provides assistance to government agencies in the BWC/OHSD-IP-6a.
conduct of safety and health inspection, accident
investigation or any other related programs. 9. Report of Dangerous Occurrence
h. For purposes of effectiveness in a workplace where full- Any dangerous occurrence as specified in sub-paragraph (2)
time safety man is required, he shall report directly to hereunder, which may or may not cause serious bodily harm to
the employer. workers employed or seriously damage the premises of
8. Report of Accidents or Occupational Illness employment shall be investigated and reported by the employer
a. All work accidents or occupational illnesses in places of upon occurrence to the Regional Labor Office or duly authorized
employment, resulting in disabling condition shall be representative having jurisdiction in duplicate using the
reported by the employer to the Regional Labor Office prescribed form DOLE/BWC/HSD-IP-6.
or duly authorized representative in duplicate and a
copy furnished the employee or his duly authorized a. The following are dangerous occurrences, which shall
representative using form DOLE/BWC/HSD-IP-6. The be investigated and reported:
formal report shall be submitted by the employer on or i. Explosion of boilers used for heating or power.
before the 20th day of the month following the date of ii. Explosion of a receiver or storage container,
occurrence of the accident or when the illness, is with pressure greater than atmospheric, of any
established and an investigation report in the prescribed gas or gases (including air) or any liquid
form shall be submitted by the Regional Office or duly resulting from the compression of such gases or
authorized representative on or before the 30th day of liquid.
the same month. iii. Bursting of a revolving wheel, grinder stone or
In case of temporary total disability where the injured grinding wheel operated by mechanical power.
or ill employee has not reported back to duty on the iv. Collapse of a crane, derrick, winch, hoist or
closing date of reporting, an estimate of the probable other appliances used in raising or lowering
days of disability shall be made and entered in the persons or goods or any part thereof, the
report and corrected after the return of the injured. In all overturning of a crane, except the breakage of
computations, this estimate shall be used. After the chain or rope sling.
return of the injured, the corrected days of absence v. Explosion or fire causing damage to the
shall be used. structure of any room or place in which persons
b. Where the accident or fitness results in death or are employed or to any machine contained
permanent total disability, the employer, in addition to therein resulting in the complete suspension of
the written report required under sub-paragraph (1) ordinary work in such room or place, or
above, shall initially notify the Regional Labor Office or stoppage of machinery or plant for not less than
duly authorized representative within twenty four (24) twenty four (24) hours, and
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vi. Electrical short circuit or failure of electrical the Regional Labor Office or duly authorized
machinery, plant or apparatus, attended by representative having jurisdiction on or before the 30th
explosion or fire causing structural damage day of the month following the end of each calendar
thereto and involving its stoppage and misuse year.
for not less than 24 hours.
12. Registration
10. Purpose of the Reporting Requirement Every employer shall register his business with the Regional
Reports made by the employer shall be exclusively for Labor Office or authorized representative having jurisdiction
the information of the Regional Labor Office or duly thereof to form part of a databank of all covered establishments.
authorized representative in securing data to be used in The establishment regardless of size of economic
connection with the performance of its accident and activity, whether small, medium or large scale in one
illness prevention duties and activities. single location, shall be one registrable unit.
These reports shall not be admissible as evidence in New establishments shall register within thirty (30) days
any action or judicial proceedings in respect to such before operation.
injury, fitness or death on account of which report is Registration shall be made in form DOLE-BWC-IP-3 in
made and shall not be made public or subject to public three copies and to be submitted to the Regional Labor
inspection except for prosecution for violations under Office or authorized representatives.
this Rule. Registration shall be free of charge and valid for the
11. Records to be Kept by Employer lifetime of the establishment except when any of the
a. The employer shall maintain and keep an accident or following conditions exists, in which case, re-registration
illness record which shall be open at all times for as if it were a new establishment is required:
inspection to authorized personnel containing the o change in business name,
following minimum data: o change in location,
i. Date of accident or illness; o change in ownership, or
ii. Name of injured or ill employee, sex and age; o re-opening after previous closing.
iii. Occupation of injured or ill employee at the time Registration shall include a layout plan of the place of
of accident or illness; work floor by floor, in a scale of 1:100 meters white or
iv. Assigned causes of accident or illness; blue print showing all the physical features of the
v. Extent and nature of disability; workplace including storage, exits, aisles, machinery,
vi. Period of disability (actual and/or charged); clinic, emergency devices and location.
vii. Whether accident involved damaged to
materials, equipment or machinery, kind and Art. 163. Research. It shall be the responsibility of the Department
extent of damage, including estimated or actual of Labor and Employment to conduct continuing studies and
cost; and research to develop innovative methods, techniques and
viii. Record of initial notice and/or report to the approaches for dealing with occupational safety and health
Regional Labor Office or authorized problems; to discover latent diseases by establishing causal
representative. connections between diseases and work in environmental
b. The employer shall accomplish an Annual Work conditions; and to develop medical criteria which will assure
Accident/Illness Exposure Data Report in duplicate insofar as practicable that no employee will suffer impairment or
using the prescribed form DOLE/BWC/HSD-IP-6b, diminution in health, functional capacity, or life expectancy as a
which shall be submitted to the Bureau copy furnished result of his work and working conditions.
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1. Agencies tasked to Conduct Research workplaces wherever they may be located; however, chartered
Vested primarily on the Bureau of Working Conditions and the cities may be allowed to conduct industrial safety inspections of
Occupational Safety and Health Center. establishments within their respective jurisdictions where they
Art. 164. Training programs. The Department of Labor and have adequate facilities and competent personnel for the purpose
Employment shall develop and implement training programs to as determined by the Department of Labor and Employment and
increase the number and competence of personnel in the field of subject to national standards established by the latter.
occupational safety and industrial health.
1. Training of Personnel in Safety and Health The Secretary of Labor and Employment may, through appropriate
Every employer shall take steps to train a sufficient number of regulations, collect reasonable fees for the inspection of steam
his supervisors or technical personnel in occupational safety boilers, pressure vessels and pipings and electrical installations,
and health. An employer may observe the following guidelines in the test and approval for safe use of materials, equipment and
the training of his personnel: other safety devices and the approval of plans for such materials,
a. In Non-Hazardous Establishment or Workplace equipment and devices. The fee so collected shall be deposited in
i. 50 to 400 workers per shift at least 1 of the the national treasury to the credit of the occupational safety and
supervisors or technical personnel shall be health fund and shall be expended exclusively for the
trained in occupational health and safety and administration and enforcement of safety and other labor laws
shall be assigned as part-time safety man. administered by the Department of Labor and Employment.
ii. Over 400 workers per shift at least 2 of its 1. Enforcement of Safety and Health Laws
supervisors shall be trained and a full-time Only the DOLE is responsible for administration and
safety man provided. enforcement of occupational safety and health laws in
b. In Hazardous Establishment or Workplace all workplaces
i. 20 to 200 workers per shift at least 1 Chartered cities may however be authorized by the
supervisor or technical personnel trained Secretary to enforce these laws in their jurisdictions if
working part-time safety man they have:
ii. Over 200 workers per shift at least 2 o Facilities
supervisors or technical personnel appointed o Personnel
full-time safety man and secretary of the safety As determined by the national Standards
committee. prescribed by the DOLE
The employment of a full-time safety man not be required where 2. Types of Inspection
the employer enters into a written contract with a qualified Technical Safety Inspection
consulting organization which shall develop and carry out his o For the purpose of safety determination of
safety and health activities; Provided, That the consultant shall boilers, pressure vessels, internal combustion
conduct plant visits at least four (4) hours a week and is subject engines, electrical installation, elevators,
to call anytime to conduct accident investigations and is hoisting equipment and other mechanical
available during scheduled inspections or surveys by the equipment
Secretary of Labor and Employment or his authorized General Safety Inspection
representatives. o Work environment; location and operation of
Art. 165. Administration of safety and health laws The Department machinery other than those covered by
of Labor and Employment shall be solely responsible for the previous type, adequacy of work space,
administration and enforcement of occupational safety and health ventilation, lighting, handling, work environment
laws, regulations and standards in all establishments and conditions, storage or work procedures,
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protection facilities and other safety and health Compensation benefits are available only in case of
hazards in workplace work-connected disability or death arising from:
3. Frequency of Inspection o Injury; or
Once a year. Special Inspection may be authorized by the o Illness.
Regional Labor Office: 2. Compensability of Disability or Death Arising From Injury
To investigate accidents, occupational illness or Injury must be the result of an employment accident that
dangerous occurrences, like those resulting in satisfies all of the following conditions:
permanent total disability or death; The employees must have been injured at the place
To conduct surveys of working conditions requested by where his work requires him to be;
the Bureau for the purpose of evaluating and assessing The employee must have been performing his functions;
environmental contaminant and physical conditions; and
to conduct investigations, inspection or follow-up If the injury is sustained elsewhere, the employee must
inspections upon request of an employers, worker or have been executing an order for the employer.
labor union of the establishment. It is not necessary that the injury be sustained at the place of
Title II employment. As long as the employee acted within the purview
EMPLOYEES COMPENSATION AND STATE INSURANCE FUND of his employment, injury sustained because of it falls within the
Chapter I laws protection.
POLICY AND DEFINITIONS
Art. 166. Policy. The State shall promote and develop a tax-exempt a. The Personal Comfort Doctrine
employees compensation program whereby employees and their Acts performed by an employee within the time and
dependents, in the event of work-connected disability or death, space limits of his employment, to minister to his
may promptly secure adequate income benefit and medical related personal comfort, such as satisfaction of his thirst,
benefits hunger or other physical demands, or to protect himself
1. Features of the New Compensation Scheme from excessive cold, shall be deemed incidental to his
Employer does not intervene in the compensation employment and injuries the employee suffered in
process and it has no control over payment of benefits. the performance of such acts shall be considered
Employer must give contributions to State Insurance compensable and arising out of and in the course of
Fund, from where compensation payments are taken; employment.
Duty is to only pay monthly premiums.
Employees are no longer required to litigate his right to b. Going to and Coming from Place of Work Doctrine
compensation. Injury or death resulting from an accident while the
Employee simply files a claim with the Employees employee is in transit as regards the work establishment
Compensation Commission, which then shall determine is compensable if the following conditions are met:
whether or not the compensation should be paid. The acts of the employee of going to, or coming
An illness is compensable only when it is classified as from, the workplace must have been a
an occupational disease and the conditions that would continuing act, i.e., he had not been diverted
render them compensable are met; Those not listed as therefrom by any other activity, and he had not
occupational diseases are compensable only if the departed from his usual route to, or from, his
claimant can prove that the risk of contracting the workplace; and
disease is increased by the conditions of employment.
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If the employee was sent on a special errand, intersection of N. Domingo and Broadway streets in Quezon City. Due to
the special errand must have been official and the strong impact of the collision, petitioner was thrown out of the vehicle
in connection with his work. and was severely injured. As a result of the mishap, petitioner was
c. Illustrative Cases (p. 527 529 of book) brought to several hospitals for treatment.
LOPEZ vs. EMPLOYEES COMPENSATION COMMISSION Held: Petitioner Valeriano was not able to demonstrate solidly how his
job as a firetruck driver was related to the injuries he had suffered. That
Facts: Petitioner's late husband, Pedro Lopez, was employed as a he sustained the injuries after pursuing a purely personal and social
public school teacher at the Urdaneta National High School, Urdaneta, function -- having dinner with some friends -- is clear from the records of
Pangasinan, from July 1, 1973 until his untimely demise on May 27, the case. His injuries were not acquired at his work place; nor were they
1987.chOn April 27, 1987, a memorandum was issued to Pedro Lopez sustained while he was performing an act within the scope of his
by the head of the school's Science Department and noted by Lino A. employment or in pursuit of an order of his superior. Thus, we agree with
Caringal, Sr. the principal lopez complied with his superior's instruction the conclusion reached by the appellate court that his injuries and
and constructed an improvised electric micro-dam, which he took home consequent disability were not work-connected and thus not
to enable him to finish it before the deadline. On May 27, 1987, at compensable.
around 6:30 A.M., while he was engrossed in his project, he in contact
with a live wire was electrocuted. He was immediately brought to a clinic JUANITA NITURA vs. EMPLOYEES' COMPENSATION COMMISSION
for emergency treatment but was pronounced dead on arrival. The
death certificate showed that he died of cardiac arrest due to accidental
electrocution. Facts: Regino S. Nitura, started his military service on October 5, 1978
when he was caged for military training in the Philippine Army.
Held: The death is compensable. While the death of Pedro Lopez took
place in his house and not in his official work station, which is the In the evening of March 2, 1986, he was instructed to go to Barangay
school, he was still discharging his function as the one in-charge of the San Jose, Dipolog City, which is more or less one (1) kilometer from the
project. He was constrained to finish the project within a specific period Command Post of his Company, to check on several personnel of the
of time and he could only do so if he worked overtime in his house. Command who were then attending a dance party. This instruction was
Inasmuch as Lopez had to finish the project on the time for the contest attested to by his Battalion Commander, Col. Loreto M. Deus, 0-90573
scheduled on October 5 and 9, 1987, it can be implied that Lopez was Inf. (GSC) PA in his affidavit dated July 8, 1986 (Annex "A" of the
Petition, Rollo, p. 15). On his way back to the camp, he passed, crossed
given permission, if not direction, to perform his work at his house.
and fell from a hanging wooden bridge connects Barangay San Jose,
Dipolog City and Barangay Basagan, Katipunan, Zamboanga del Norte,
CELERINO VALERIANO vs. EMPLOYEES COMPENSATION his head hitting the stony portion of the ground. His death certificate
COMMISSION (Annex 'B" of the Petition, Rollo, p. 16) shows that he died of
"cardiorespiratory arrest, shock, traumatic due to hemorrhage,
Facts: Celerino S. Valeriano was employed as a fire truck driver intracranial due to severe concussion of the brain due to accidental fall".
assigned at the San Juan Fire Station. Sometime on the evening of July
3, 1985, petitioner was standing along Santolan Road, Quezon City, Held: Compensable. Performing an official function when he died.
when he met a friend by the name of Alexander Agawin. They decided Twenty-Four-Hour Duty Doctrine Under the 24 hour duty doctrine, a
to proceed to Bonanza Restaurant in EDSA, Quezon City, for dinner. On soldier on active duty status and is subject to military discipline and
their way home at around 9:30 PM, the owner-type jeepney they were military law 24 hours a day. To be entitled to compensation, the
riding in figured in a head-on collision with another vehicle at the
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standard of work connection must still be established by substantial Doctrine, a soldier on active duty status and is subject to military
evidence. discipline and military law 24 hours a day.
DE LA REA vs. EMPLOYEES' COMPENSATION COMMISSION Note: Disability or death arising from injury by a member of the military
while on rest and recreation, which is considered part of the soldiers
Facts: De la Rea enlisted in the Philippine Navy. On May 15, 1982, he military activities, after having gone on actual combat duty, as certified to
was granted vacation leave, for fifteen (15) days, from May 15, to May by the proper commanding officer, is compensable.
30, 1982, for the purpose of undergoing physical examination relative to
his re-enlistment in the Philippine Navy. While enjoying his rest and Compensability of Death or Disability Arising From Illness
recreation privileges at his hometown in Halang, Amadeo, Cavite, he
was shot to death for unknown motive by a certain Pepito Montoya who Death or disability from illness is compensable:
is also a resident of the same place. Mauricio de la Rea died instantly a. if the illness is clarified as an occupational disease;
from gunshot wounds he sustained. b. if not classified as occupational disease, the risk of contracting
the same is proven by substantial evidence to have been
Held: Not compensable. De la Rea was not at the time and place where increased by the working conditions.
his work is required him to be. Neither was he performing official
functions. His death is not work- connected. Occupational Diseases
Facts: On 1 August 1985, Sgt. Hinoguin and two (2) members of his
Detachment, sought permission from Captain Frankie Z. Besas, to go on
overnight pass to Aritao, Nueva Viscaya, "to settle [an] important matter
thereat."Captain Besas orally granted them permission to go to Aritao
and to take their issued firearms with them, considering that Aritao was
regarded as "a critical place " that is, it had peace and order problems
due to the presence of elements of NPA in or in the vicinity of Aritao.
Upon reaching the poblacion of Aritao, he was accidentally shot by his
companion, as a result of which he died.
(b) Chronic radiation syndrome Chronic over-exposure to X-rays (k) Dinitrophenol or its homologue All work involving exposure to the
with a long latent risk concerned.
period affecting the skin, blood
and reproductive organ. (l) Halogen derivatives of All work involving exposure to the
hydrocarbon of the aliphatic series risk concerned.
(c) Glass Blowers cataract Among furnace men, glass
blowers, baker, blacksmith, (m) Lead or its toxic compounds All work involving exposure to the
foundry workers. These are risk concerned.
workers exposed to infrared
rays. (n) Manganese or its toxic All work involving exposure to the
compounds risk concerned
9. Poisoning and its sequelae
caused by: (o) Mercury or its toxic compounds All work involving exposure to the
risk concerned
(a) Ammonia All work involving exposure of the (p) Nitrous fumes All work involving exposure to the
risk concerned. risk concerned.
(b) Arsenic or its toxic compound All work involving exposure to the (q) Phosgene All work involving exposure to the
risk concerned. risk concerned.
(c) Benzene or its toxic homologues, All work involving exposure to the (r) Phosphorus or its toxic All work involving exposure to the
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compounds risk concerned. persons suffering from
viral hepatitis, or in a service
(s) Sulfur dioxide All work involving exposure to the ancillary to such treatment
risk concerned. or nursing.
10. Pneumoconiosis
14. Poisoning by cadmium* Among workers in battery
(a) Coal miner's Exposure to coal dust. factories, who are exposed to
(b) Bysinosis Exposure to cotton dust causing cadmium fumes.
weavers cough or mill fever.
15. Leukemia and lymphoma* Among operating room personnel
(c) Bagassosis Exposure to sugar cane dust. due to exposure to
anesthetics.
(d) Psittacosis Any occupation involving handling
of parrots, parakeets 16. Cancer of stomach and other Among woodworkers, wood
and other species of birds. lymphatic and products industry carpenters,
blood forming vessels; nasal loggers and employees in pulp
11. Diseases caused by Any occupation involving cavity and and paper mills and
abnormalities in tempera- exposure to excessive heat or sinuses.* plywood mills.
ture and humidity. cold
17. Cancer of the lungs, liver and Among vinyl chloride workers,
(a) Heat stroke/cramps/exhaustion Any occupation involving brain* plastic workers
exposure to excessive heat.
20. MALARIA AND SCHISTOSOMIASIS. All the following conditions (b) Its appearance was accompanied by pain, discoloration and
evidence of a tearing of the tissues.
(a) Through the knowledge of the respective incubation periods of (c) The disease was immediately preceded by undue or severe
the different types of the diseases, the physician determining the strain arising out of and in the course of employment.
causal relationship between the employment and the illness or
malaria or schistosomiasis should be able to tell whether the
(d) A protrusion of mass should appear in the area immediately
disease of the afflicted employee manifested itself while he was so
following the alleged strain.
employed.chan robles virtual law library
23. BRONCHIAL ASTHMA. All the following conditions
(b) Compensability should be based on the principle of greater risk
of acquiring the disease in the place of work than in the place of
usual residence of the afflicted worker. (a) There is no evidence of history of asthma before employment.
(c) The place of work of employment has to be verified as a (b) The allergen is present in the working conditions.
malarial or schistosomal work area.
(c) Sensitivity test to allergens in the working environment should
21. PNEUMONIA. All of the following conditions yield positive results.
(a) There must be an honest and definite history of wetting and (d) A provocative test should show positive results.
chilling during the course of employment and also, of injury to the
chest wall with or without rib fracture, or inhalation of noxious 24. OSTEOARTHRITIS. a) Any occupation involving: aa) joint strain
gases, fumes, and other deleterious substances in the place of from carrying heavy loads, or unduly heavy physical labor, as
work. among laborers and mechanics; bb) minor or major injuries to the
joint; cc) excessive use or constant strenuous usage of a particular
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joint, as among sportsmen, particularly those who have engaged in b. The disease was contracted as a result of the employees
the more active sports activities; dd) extreme temperature changes exposure to the described risks;
(humidity, heat, and cold exposures); and ee) faulty work posture or c. The disease was contracted within a period of exposure and
use of vibratory tools. under such factors necessary to contract it;
d. There was no notorious negligence on the part of the employee.
25. VIRAL ENCEPHALITIS. Any occupation involving; aa) contact
with an infected person, as in areas of poor sanitation, with a high GR: Silicosis, asbestosis and byssinosis shall not be compensable if the
density of school children, who are the most frequent virus exposure to the described risk is less than 10 years.
spreaders; bb) rural exposure, primarily in picnics, camping
activities, fishing or hunting in, or adjacent to, woods or subtropical EXP: unless proven otherwise.
vegetations, or as among agricultural and forest workers; and cc)
contact with other sources of infection, such as birds and animals,
as among veterinarians and abattoir workers.
Increase Risk Doctrine
26. PEPTIC ULCER. Any occupation involving prolonged
emotional, or physical stress, as among professional people,
transport workers, and the like. There is increased risk if the illness is caused by or precipitated
by factors inherent in the employees nature of work and working
conditions.
27. PULMONARY TUBERCULOSIS. In addition to working
It does not include aggravation of pre-existing illness.
conditions already listed under PD 626, as amended, any
occupation involving constant exposure to harmful substances in All that is required is reasonable work-connection, which could
the working environment, in the form of gases, fumes, vapors and be established by mere substantial evidence.
dust, as in chemical and textile factories; overwork or fatigue; and It is essential for the claimant to show that the development of
exposure to rapid variations in temperature, high degree of the disease was brought largely by the conditions present in the
humidity and bad weather conditions; and nature of the job.
The test of evidence in compensation cases or the relation of the
disease with the employment is probability and not certainty.
28. VIRAL HEPATITIS. In addition to the working conditions already
listed under PD 626, as amended, any occupation involving:
exposure to a source of infection through ingestion of water, milk,
or other foods contaminated with hepatitis virus; Provided that the
physician determining the causal relationship between the Illustrative Cases
employment and the illness should be able to indicate whether the
disease of the afflicted worker manifested itself while he was so A. Acute follicular pharyngitis with hypertropic rhinitis
employed, knowing the incubation period thereof.
SARMIENTO VS. EMPLOYEES' COMPENSATION COMMISSION
Held: Compensable. Deceased served in three municipalities which DATOR vs.EMPLOYEES' COMPENSATION COMMISSION
did not have adequate transportation facilities. He was literally
exposed to the elements the sun, rain, water and rough roads. He Facts: Dator who was a municipal librarian of the Municipality of
worked as if he were a fieldman; he was a roving judge. The tedious Lopez, Quezon when she died of Bronchogenic Carcinoma with
work coupled with unhealthy exposure bore down on him after 20
Pleural Effusion on December 2, 1972.
years. He must have been a strong, healthy person when he first
joined the Judiciary because it took all of 20 years before he suffered
from angina pectoris, gouty arthritis, coronary insufficiency and Held: Compensable. Exposed to dusty books and other deleterious
monocytic leukemia. Needless to say, the human body can only take substances in the library which may have increased the risk of her
so much physical and mental pressures. contracting cancer of the lungs.
Facts: Patricio D. Armea, husband of the herein petitioner was D. Cancer of the liver
employed by the government on February 21, 1942, and held the
positions of clerk, public school teacher, budget examiner and lastly Abadiano vs. GSIS
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Facts: Catalina Buenvenida was employed at the Department of Held: Not compensable. Cancer of pancreas is not an occupational
Education as elementary grades teacher. The deceased's liver disease. There is no showing that the work of a bookkeeper would
cancer started in September of 1978 as gradual weight loss, nausea increase the risk of contracting cancer of the pancreas.
and vomiting. These symptoms were later on accompanied by
emaciation and gradual enlargement of the upper abdomen. She G. Cancer of the rectum
was then 51 years of age and her death was attributed to her
affliction of cancer of the liver.
CRISTOBAL vs. EMPLOYEES' COMPENSATION COMMISSION
Held: Compensable. The duties of the public school teacher are not
Facts: Fortunato S. Cristobal was employed as Supervising
confined to the classroonm During the 24 years that Catalina B. Information Officer 11 of the National Science Development Board
Buenvenida worked as a teacher, she must have been exposed to (NSDB for short) based in Bicutan, Taguig, Rizal. On April 8, 1976,
the elements while attending to the outdoor projects which were part
he developed loose bowel movement which later worsened and his
of the curriculum and extra curricular activities connected with her
excrement was marked with fresh blood. Self-administered
school work. medications were made but symptoms persisted until April 22, 1976
when he was brought to the Hospital . he was diagnosed with rectal
E. Cancer of the breast malignancy. Despite earnest medical efforts, he succumbed to his
illness on May 27, 1977
Bonifacio vs. GSIS
Held: Compensable. The nature of his work exposed him to various
Facts: Lourdes Bonifacio was a classroom teacher from August, chemicals and intense heat. This circumstance must have increased
1965 until she contracted carcinoma of the breast with metastases to the risk of contracting the cancer of the rectum.
the gastrointestinal tract and lungs which caused her death on
October 5, 1978. H. Cancer of the colon
Held: Not compensable. The cancer which affected the decease not BRAVO vs. EMPLOYEES' COMPENSATION COMMISSION
being occupational in her particular employment.
Facts: Bravo was employed at the Bureau of Coast and Geodetic
F. Cancer of the pancreas Survey as a cartographer. litho-photo engraving supervisor, he was
involved in drafting and plate printing, developing and processing
MILANO vs.EMPLOYEES' COMPENSATION COMMISSION either dry or wet negatives, and supervising the formulation of light-
sensitive lithographic chemicals from re-agent of nitric, phosphoric,
Facts: Samuel Milano started working for the government in 1955 as oleic acids, potassium ferricynamide, ammonium hydroxide and
a FACOMA bookkeeper. Milano started to feel vague signs of ammonium dichromate in the kithographic laboratory. November,
"epigastric pain" which were later diagnosed as "penetrating 1979, Bravo complained of irregular bowel movement, constipation
Duodenal Ulcer On". Dr. Gerardo Ypil of the hospital diagnosed his and abdominal pain. A few months later he began losing weight and
ailment as "cancer of the pancreas with metastases". On March 15, appetite. His ailment was diagnosed as "adenocarcinoma sigmoid
1977, he was discharged from the hospital. On the same day, he (colon) Duke's C and chronic peri-appendicitis".
died of cardiorespiratory arrest due to cancer of the pancreas.
Held: Not compensable. Bravo's ailments were "too remote to be
related causally to his work and working conditions" at the Bureau of
Coast and Geodetic Survey.
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I. Cirrhosis of the liver K. Myocardial infraction
Progression/ Deterioration of Illness/ Injury (i) "Dependent" means the legitimate, legitimated or legally adopted or
acknowledged natural child who is unmarried, not gainfully employed,
Where the illness or injury is shown to have arisen in the course and not over twenty-one (21) years of age or over twenty-one (21) years
of employment, every natural consequence that flows from the of age provided he is incapacitated and incapable of self-support due to
a physical or mental defect which is congenital or acquired during
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minority; the legitimate spouse living with the employee and the parents (r) "Related benefit" means all payments made under this Title for
of said employee wholly dependent upon him for regular support. appliances and supplies.
chanroblesvirtuallawlibrary
(s) "Appliances" means crutches, artificial aids and other similar devices.
(j) "Beneficiaries" means the dependent spouse until he/she remarries
and dependent children, who are the primary beneficiaries. In their (t) "Supplies" means medicine and other medical, dental or surgical
absence, the dependent parents and subject to the restrictions imposed items.
on dependent children, the illegitimate children and legitimate
descendants, who are the secondary beneficiaries: Provided, That the
(u) "Hospital" means any medical facility, government or private,
dependent acknowledged natural child shall be considered as a primary authorized by law, an active member in good standing of the Philippine
beneficiary when there are no other dependent children who are qualified
Hospital Association and accredited by the Commission.
and eligible for monthly income benefit.
(v) "Physician" means any doctor of medicine duly licensed to practice in
(k) "Injury" means any harmful change in the human organism from any
the Philippines, an active member in good standing of the Philippine
accident arising out of and in the course of the employment. Medical Association and accredited by the Commission.
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monthly salary credits by thirty (30) times the number of calendar months life insurance benefit administered by the System shall be subject to
of coverage in the period. compulsory coverage.
In the case of the GSIS, the average daily salary credit shall be the 1. Covered Employers
actual daily salary or wage, or the monthly salary or wage divided by the All employers, whether belonging to the public or private
actual number of working days of the month of contingency. sector are covered.
Public Sector: covered by GSIS comprising the National
(aa) "Quarter" means a period of three (3) consecutive months ending on Government, Government owned/controlled
the last days of March, June, September and December. corporations, Philippine Tuberculosis society, The
Philippine National Red Cross, and Philippine Veterans
(bb) "Semester" means a period of two consecutive quarters ending in Bank.
the quarter of death, permanent disability, injury or sickness. Private Sector: Covered by SSS.
2. Covered Employees
(cc) "Replacement ratio" - The sum of twenty percent and the quotient
obtained by dividing three hundred by the sum of three hundred forty and GR; All employees not over 60 years old, whether private or
the average monthly salary credit. public.
EXP:employee who is over (60) years of age and paying
(dd) "Credited years of service" -For a member covered prior to January, contributions to qualify for the retirement or life insurance
1975, nineteen hundred seventy-five minus the calendar year of benefit administered by the System shall be subject to
coverage, plus the number of calendar years in which six or more compulsory coverage.
contributions have been paid from January, 1975 up to the calendar year
containing the semester prior to the contingency. For a member covered ART. 169. Foreign employment. - The Commission shall ensure
on or after January, 1975, the number of calendar years in which six or adequate coverage of Filipino employees employed abroad, subject to
more contributions have been paid from the year of coverage up to the regulations as it may prescribe.
calendar year containing the semester prior to the contingency.
Working Abroad
(ee) "Monthly income benefit" means the amount equivalent to one
hundred fifteen percent of the sum of the average monthly salary credit Filipinos working abroad for an employer who carries on in the
multiplied by the replacement ratio, and one and a half percent of the Philippines any trade, business, industry are covered, and
average monthly salary credit for each credited year of service in excess entitled to same benefits to employees working in the
of ten years: Provided, That the monthly income benefit shall in no case Philippines.
be less than two hundred fifty pesos.
Chapter II
ART. 170. Effective date of coverage. - Compulsory coverage of the
COVERAGE AND LIABILITY employer during the effectivity of this Title shall take effect on the first
day of his operation, and that of the employee, on the date of his
ART. 168. Compulsory coverage. - Coverage in the State Insurance employment.
Fund shall be compulsory upon all employers and their employees not
over sixty (60) years of age: Provided, That an employee who is over Effective Date of Coverage
(60) years of age and paying contributions to qualify for the retirement or
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First day of operation but not earlier than January 1, 1975. 2. When An Employee is Deemed Reported
When the SSS or GSIS has received a report or written
Art. 171. Registration. Each employer and his employees shall register communication about him from his employer and Employees
with the System in accordance with its regulations. Compensation contribution paid in his name before a
compensable contingency occurs
1. Registration Procedure (Rule II of the Amended Rules on
Employees Compensation) 3. Effect of Failure to Report
Section1 Requirement Employer fine (P1,000-P10,000) and/or imprisonment for
a. Every employer shall register with the System by duration of the violation or non-compliance or until such time that
accomplishing the prescribed forms rectification of the violation has been made, at the discretion of
b. Every employee shall be registered with the System through the Court
his employer by accomplishing the prescribed forms Compensable contingency occurs after 30 days and before the
System receives any report for coverage about the employee or
Section 2 GSIS (applicable to public sector) EC contribution on his behalf employer liable to System for the
a. employer operating before January 1, 1975 register not lump sum equivalent to the benefits to which he or his
later than March 31, 1975 dependents may be entitled
b. employer operating on or after January 1, 1975 register
within one month from the first day of operation
Art. 172. Limitation of liability. The State Insurance Fund shall be
Section 3 SSS (applicable to private sector) liable for compensation to the employee or his dependents, except when
a. employer already registered need not register again; the disability or death was occasioned by the employees intoxication,
automatically registered willful intention to injure or kill himself or another, notorious negligence,
b. employer not yet registered register not later than the first or otherwise provided under this Title.
day of operation
c. employee already registered need not register again; 1. Factors That Bar Compensability
automatically registered a. Intoxication
d. employee not yet registered register not later than the date b. Willful intention to injure or kill himself or another
of employment c. Notorious negligence
e. only one registration is needed for SSS, Medicare and
Employees Compensation 1.1. Intoxication
Persons condition in being under the influence of liquor or
Guidelines in reporting an unregistered employee by prohibited drugs to the extent that his acts, words or conduct is
employer impaired visibly, as to prevent him from physically and mentally
a. every employee already reported need not be reported engaging in the duties of his employment
again; automatically reported Degree must be such that it rendered the employee incapable of
b. newly hired employee reported by his employer not later doing his work
than 30 days from date of employment Accident or injury must be shown by clear and convincing proof
c. every employee shall be deemed as having been duly that it arose out of his drunken condition and not because of his
reported for coverage if the System has received a report or work
written communication about him from his employer or an Burden of proof party who raises drunkenness as a defense
EC contribution paid in his name by his employer, before a
compensable contingency occurs 1.2. Willful Intention to Injure/Kill Himself or Another
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Deliberate intent on the part of the employee to inflict injuries to
himself or another Facts: Prior to the effectivity of the Labor Code, it had been the practice
Reason the resulting injury, disability or death was not caused of San Miguel Corporation to grant to its salesmen and helpers suffering
by the employment but by the employees own voluntary act work-connected sickness or disability, their basic salary and other
Applies only work-connected injury, disability or death benefits, the aggregate value of which was higher than the
corresponding benefits under the Workmens Compensation Act. When
1.3. Notorious Negligence the new compensation scheme under the Labor Code took effect, San
Something more than mere or simple negligence or contributory Miguel discontinued the practice. A complaint was filed against San
negligence Miguel to pay the difference in monetary benefits.
Deliberate act of the employee to disregard his own personal
safety Issue: Whether or not San Miguel can be compelled to pay the
Failure to observe any or slight care difference
Tantamount to gross negligence
Must be shown by clear and convincing proof that it was the Decision: No. San Miguel cannot be compelled to pay the difference.
cause of the injury
Disobedience to rules, orders, and/or prohibition does not per se Ratio: The Labor Code has established a new compensation scheme in
constitute notorious negligence, if no intention can be attributed place of the old scheme. The new compensation has relieved an
to the injured to end his life employer from the obligation of directly paying compensation to his
employees for work-connected illness or injury.
Art. 173. Extent of liability. Unless otherwise provided, the liability of 2. Recovery Under Other Laws
the State Insurance Fund under this Title shall be exclusive and in place Art. 173 payment of compensation under this Title shall nor bar
of all other liabilities of the employer to the employee, his dependents or recovery of benefits as provided for in:
anyone otherwise entitled to receive damages on behalf of the employee o Sec. 699 of Revised Administrative Code
or his dependents. The payment of compensation under this Title shall o RA 1161, as amended
not bar the recovery of benefits as provided for in Section 699 of the o RA 610, as amended
Revised Administrative Code, Republic Act Numbered Eleven hundred o RA 4864, as amended
sixty-one, as amended, Republic Act Numbered Forty-eight hundred o Other laws whose benefits are administered by the
sixty-four as amended, and other laws whose benefits are administered System or by other agencies of the government
by the System or by other agencies of the government. (As amended by
Presidential Decree No. 1921). Q: Does it mean that the employee can recover from both the
Labor Code and other specified laws?
1. Exclusiveness of Liability A: No (Rule IV of the Amended Rules on Employees
Liability of State Insurance Fund is exclusive and in place of all Compensation)
other liabilities which the employer may have to the employee, SEC. 2. Exclusiveness (a) Whenever other laws provide similar
his dependents or anyone entitled to receive damages in behalf benefits for the same contingency covered by these Rules, the
of the employee or his dependents employee who qualifies for the benefits shall have the option to
Relieves the employer from any further obligation to directly pay choose under which law will be paid to him. However if benefits
compensation benefits to its employees for work-connected chosen by law are less than the benefit provided under these
sickness or injury Rules Employees Compensation to pay only the difference in
benefits
c. To approve rules and regulations governing the processing of j. To acquire property, real or personal, which may be necessary
claims and the settlement of disputes arising therefrom as or expedient for the attainment of the purposes of this Title;
prescribed by the System;
k. To enter into agreements or contracts for such services and as
d. To initiate policies and programs toward adequate occupational may be needed for the proper, efficient and stable administration
health and safety and accident prevention in the working of the program;
environment, rehabilitation other than those provided for under
Article 190 hereof, and other related programs and activities, and l. To perform such other acts as it may deem appropriate for the
to appropriate funds therefor; (As amended by Section 3, attainment of the purposes of the Commission and proper
Presidential Decree No. 1368)
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enforcement of the provisions of this Title. (As amended by Deposited with any authorized depositary bank approved by the
Section 18, Presidential Decree No. 850) Employees Compensation Commission or invested with due
regard for the liquidity needs of the System
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b. In all other cases, decisions, orders and resolutions of the portion thereof from the wages or salaries of the employees shall
Commission which have become final and executory shall be be null and void.
enforced and executed in the same manner as decisions of the
Court of First Instance, and the Commission shall have the d. When a covered employee dies, becomes disabled or is
power to issue to the city or provincial sheriff or to the sheriff separated from employment, his employers obligation to pay the
whom it may appoint, such writs of execution as may be monthly contribution arising from that employment shall cease at
necessary for the enforcement of such decisions, orders or the end of the month of contingency and during such months that
resolutions, and any person who shall fail or refuse to comply he is not receiving wages or salary.
therewith shall, upon application by the Commission, be
punished by the proper court for contempt. 1. Payment of Premium Contributions Sole Obligation of Employer
Payment of premium contributions for employees compensation
1. Payment of Awards sole obligation of employer
Decisions, orders or resolutions of the ECC en banc shall be Any contract or device for the deduction of any portion thereof
complied with by the SSS or GSIS within fifteen (15) days from from the wages of the employee null and void
receipt Contributions non-refundable
3. Period of Entitlement Art. 186. Liability. The System shall have the authority to choose or
Beginning with the first day of injury or sickness, during the order a change of physician, hospital or rehabilitation facility for the
subsequent period of his disability, and as the progress of his employee, and shall not be liable for compensation for any aggravation
recovery may require, subject to the periodic submission of a of the employees injury or sickness resulting from unauthorized changes
medical report on his disability certified by his physicians by the employee of medical services, appliances, supplies, hospitals,
rehabilitation facilities or physicians.
4. Meaning of Ward Services
Ward hospital room that can accommodate six (6) or more 1. Change of Medical services
patients Should be approved by the SSS or GSIS, otherwise, System
Covers all of the services an in-patient would ordinarily receive in cannot be held liable for compensation for any aggravation of the
a hospital, such as: injury or sickness resulting from any unauthorized changes
a. Bed in a ward (6 beds/room)
b. All meals, including special diets
c. Regular nursing services Art. 187. Attending physician. Any physician attending an injured or
d. Medicines furnished by the hospital sick employee shall comply with all the regulations of the System and
e. Laboratory services such as blood and urine tests submit reports in prescribed forms at such time as may be required
f. Radiology services such as x-rays concerning his condition or treatment. All medical information relevant to
g. Medical supplies such as splints and casts the particular injury or sickness shall, on demand, be made available to
h. Use of appliances and equipment furnished by the the employee or the System. No information developed in connection
hospital, such as wheelchairs, crutches and braces with treatment or examination for which compensation is sought shall be
i. Anesthetic services considered as privileged communication.
j. Operating room charges
k. Surgery 1. Obligations of Attending Physician
l. Doctors services a. Comply with all the regulations of the SSS or the GSIS
b. Submit medical reports using the prescribed form
5. Not Included in Ward Services
a. Extra charge for more comfortable accommodation e.g. private 2. Medical Information Not Privileged Communication
and semi-private rooms Employees compensation cases
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Art. 187 No information developed in connection with Benefit not to exceed P60.00/day exclusive of drugs and
treatment or examination for which compensation is sought shall medicines
be considered as privileged communication
FOR SURGICAL SERVICES
Surgical expense benefit
Art. 188. Refusal of examination or treatment. If the employee 1. Surgeons fee according to the ECC Relative Value
unreasonably refuses to submit to medical examination or treatment, the Study
System shall stop the payment of further compensation during such time 2. Anesthesiologists fee ordinarily not exceeding 25% of
as such refusal continues. What constitutes an unreasonable refusal the surgeons fee
shall be determined by the System which may, on its own initiative, 3. Operating fee ordinarily not exceeding 25% of the
determine the necessity, character and sufficiency of any medical surgeons fee
services furnished or to be furnished. Surgeons fee paid to surgeon who performed the operation;
anesthesiologists fee anesthesiologist; conditions:
1. Suspension of Compensation Payments 1. Only one surgeon paid per operation
Refusal of an employee to submit to medical examination or 2. Only one anesthesiologist, if any, paid per operation
treatment should be unreasonable 3. Local anesthesia, other than regional nerve block
unreasonable refusal matter to be determined by SSS or anesthesia shall not be compensable
GSIS Operating room fee paid by SSS or GSIS only for surgical
procedure done in the operating-diagnostic-therapeutic room
complex of the accredited hospital
Art. 189. Fees and other charges. All fees and other charges for
hospital services, medical care and appliances, including professional
fees, shall not be higher than those prevailing in wards of hospitals for Art. 190. Rehabilitation services.
similar services to injured or sick persons in general and shall be subject a. The System shall, as soon as practicable, establish a continuing
to the regulations of the Commission. Professional fees shall only be program, for the rehabilitation of injured and handicapped
appreciably higher than those prescribed under Republic Act Numbered employees who shall be entitled to rehabilitation services, which
sixty-one hundred eleven, as amended, otherwise known as the shall consist of medical, surgical or hospital treatment, including
Philippine Medical Care Act of 1969. appliances if they have been handicapped by the injury, to help
them become physically independent.
1. Fees and Charges
FOR HOSPITAL CONFINEMENT b. As soon as practicable, the System shall establish centers
Injury benefit not to exceed actual cost of ward services in an equipped and staffed to provide a balanced program of remedial
accredited hospital treatment, vocational assessment and preparation designed to
Sickness benefit not to exceed the actual cost of ward in an meet the individual needs of each handicapped employee to
accredited hospital equipped with facilities necessary for the restore him to suitable employment, including assistance as may
treatment of the disease be within its resources, to help each rehabilitee to develop his
mental, vocational or social potential.
FOR DOMICILIARY CARE
Benefit not to exceed P50.00 for the first visit and P50.00 for 1. Meaning of Rehabilitation
each subsequent visit Process by which there is provided a balanced program of
remedial treatment, vocational assessment, and preparation
FOR AMBULATORY SERVICES designed to meet the individual needs of each handicapped
employee to restore him to suitable employment, including
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assistance as may be within its resources to help each of such a disability or fraction thereof, be paid by the System an
rehabilitee to develop his mental, vocational, or social potential income benefit equivalent to ninety percent of his average daily
salary credit, subject to the following conditions: the daily income
2. Conditions for Rehabilitation benefit shall not be less than Ten Pesos nor more than Ninety
a. Employee has been reported to the SSS or GSIS Pesos, nor paid for a continuous period longer than one hundred
b. He sustains a permanent disability as a result of a compensable twenty days, except as otherwise provided for in the Rules, and
injury or sickness the System shall be notified of the injury or sickness. (As
c. He has to been placed in suitable employment amended by Section 2, Executive Order No. 179)
3. Period of Entitlement b. The payment of such income benefit shall be in accordance with
Period of disability unless suspended or terminated under any of the regulations of the Commission. (As amended by Section 19,
the following grounds: Presidential Decree No. 850)
a. Upon suitable employment
b. Upon suspension or termination of such services by the 1. Meaning of Temporary Total Disability
Rehabilitation Center by self-termination Healing time, or that period of time in which the claimant
c. By self-termination employee, by reason of the injury or sickness, is unable to
perform any kind of labor
4. Extent of Services Situations:
a. Medical-surgical management a. As a result of the injury or sickness, the employee is
b. Hospitalization unable to perform any gainful occupation for a
c. Necessary appliances and supplies continuous period not exceeding 120 days
d. Vocational training b. The injury or sickness still requires medical attendance
e. Assistance for placement beyond 120 days but not to exceed 240 days from the
Transportation allowance between place of residence and the onset of disability
rehabilitation facility, lunch, and dormitory allowance in Disablement of a employee to earn wages in the same kind of
appropriate cases may be included in the extent of services work of similar nature, that he was trained for and accustomed to
perform, or any kind of work which a person of his mentality and
5. Limitations attachment could do
System not legally responsible when the injury, sickness, Disability understood on the loss of earning capacity
disability, or death during the rehabilitation is occasioned by any o Reason: it is not the injury that is compensated but the
of the following: incapacity to work resulting in the impairment of ones
a. Intoxication earning capacity
b. Willful intention to injure or kill himself or another
c. Notorious negligence 2. Conditions for Entitlement to Temporary Total Disability
a. Employee duly has been reported to SSS or GSIS
b. He sustains temporary total disability as a result of the injury or
Chapter VI sickness
DISABILITY BENEFITS c. SSS or GSIS has been duly notified of the injury or sickness
which caused his disability
Art. 191. Temporary total disability.
a. Under such regulations as the Commission may approve, any 3. Purpose of the Law
employee under this Title who sustains an injury or contracts To compensate the employee for what he might have earned
sickness resulting in temporary total disability shall, for each day during the period of treatment
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b. The monthly income benefit shall be guaranteed for five years, A persons disability might not emerge at one precise moment in
and shall be suspended if the employee is gainfully employed, or time but rather over a period of time
recovers from his permanent total disability, or fails to present
himself for examination at least once a year upon notice by the
System, except as otherwise provided for in other laws, decrees, Vicente vs. Employees Compensation Commission (193 SCRA 190)
orders or Letters of Instructions. (As amended by Section 5,
Presidential Decree No. 1641) Facts: Vicente was formerly employed as a nursing attendant at the
Veteran Memorial Medical Center. On August 5, 1981, at the age of
c. The following disabilities shall be deemed total and permanent: forty-five (45), and having rendered more than twenty-five (25) years of
government service, he applied for optional retirement effective August
1. Temporary total disability lasting continuously for more 16, 1981, giving as reason therefor his inability to continue working as a
than one hundred twenty days, except as otherwise result of his partial disability. He likewise filed with the GSIS a claim for
provided for in the Rules; permanent total disability with supporting Medical Certificate attesting
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that he was suffering from Osteoarthritis, multiple; Hypertensive One leg 46
Cardiovascular Disease; Cardiomegaly; and Left Ventricular One ear 10
Hypertrophy. The GSIS granted the claim but only for permanent partial Both ears 20
disability Hearing of one ear 10
Hearing of both ears 50
Issue: Whether or not Vicente suffers from permanent total disability Sight of one eye 25
Decision: Yes. Vicente suffers from permanent total disability. (c) A loss of a wrist shall be considered as a loss of the hand, and a loss
of an elbow shall be considered as a loss of the arm. A loss of an ankle
Ratio: Considering that Vicente was only 45 years old when he retired shall be considered as loss of a foot, and a loss of a knee shall be
and still entitled, under good behavior, to 20 more years in service, the considered as a loss of the leg. A loss of more than one joint shall be
approval of his optional retirement proves that he was no longer fit to considered as a loss of one-half of the whole finger or toe: Provided,
continue in his employment for optional retirement is allowed only upon That such a loss shall be either the functional loss of the use or physical
proof that the employee is already physically incapacitated to render loss of the member. (As amended by Section 7, Presidential Decree No.
sound and efficient service. Further, the physicians of Veterans 1368).
Memorial Medical Center categorically certified that he was under
permanent total disability. (d) In case of permanent partial disability less than the total loss of the
member specified in the preceding paragraph, the same monthly income
benefit shall be paid for a portion of the period established for the total
ARTICLE. 193. Permanent partial disability. (a) Under such regulations loss of the member in accordance with the proportion that the
as the Commission may approve, any employee under this Title who pARTICLEial loss bears to the total loss. If the result is a decimal
contracts sickness or sustains an injury resulting in permanent partial fraction, the same shall be rounded off to the next higher integer.
disability shall, for each month not exceeding the period designated
herein, be paid by the System during such a disability an income benefit
(e) In cases of simultaneous loss of more than one member or a part
for permanent total disability. thereof as specified in this Article, the same monthly income benefit shall
be paid for a period equivalent to the sum of the periods established for
(b) The benefit shall be paid for not more than the period designated in the loss of the member or the part thereof. If the result is a decimal
the following schedules: fraction, the same shall be rounded off to the next higher integer.
Complete and permanent No. of Months (f) In cases of injuries or illnesses resulting in a permanent partial
loss of the use of disability not listed in the preceding
One thumb 10 schedule, the benefit shall be an income benefit equivalent to the
One index finger 8 percentage of the permanent loss of the capacity to work. (As added by
One middle finger 6 Section 7, Presidential Decree No. 1368).
One ring finger 5
One little finger 3 (g) Under such regulations as the Commission may approve, the income
benefit payable in case of permanent partial disability may be paid in
One big toe 6 monthly pension or in lump sum if the period covered does not exceed
One toe 3 one year. (As added by Section 7, Presidential Decree No. 1368).
One arm 50
One hand 39
One foot 31
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Permanent partial disability one where as a result of injury or Chapter VII
sickness, the employee suffers a lasting partial loss of the use of DEATH BENEFITS
any part of his body.
Conditions to entitlement of permanent partial disability benefits: ARTICLE. 194. Death. - (a) Under such regulations as the Commission
may approve, the System shall pay to the primary beneficiaries upon the
a. Te employee should have been reported to the SSS or death of the covered employee under this Title, an amount equivalent to
the GSIS his monthly income benefit, plus ten percent thereof for each dependent
b. He sustains permanent partial disability as a result of child, but not exceeding five, beginning with the youngest and without
injury or sickness substitution, except as provided for in paragraph (j) of Article 167 hereof:
c. The SSS or GSIS has been duly notified of the injury or Provided, however, That the monthly income benefit shall be guaranteed
sickness which caused his disability. for five years: Provided, further, That if he has no primary beneficiary, the
System shall pay to his secondary beneficiaries the monthly income
Entitlement exists even if the employee is gainfully employed benefit but not to exceed sixty months: Provided, finally, That the
and receiving his wages or salary minimum death benefit shall not be less than fifteen thousand pesos. (As
amended by Section 4, Presidential Decree No. 1921).
Period of entitlement: beginning with the first month of such
disability but not longer than the designed number of months in
the ff schedule: (b) Under such regulations as the Commission may approve, the System
shall pay to the primary beneficiaries upon the death of a covered
employee who is under permanent total disability under this Title, eighty
Complete AND No. of months
percent of the monthly income benefit and his dependents to the
permanent loss of the
dependents pension: Provided, That the marriage must have been
use of
validly subsisting at the time of disability: Provided, further, That if he has
1 thumb 10
no primary beneficiary, the System shall pay to his secondary
1 index finger 8 beneficiaries the monthly pension excluding the dependents pension, of
1 middle finger 6 the remaining balance of the five-year guaranteed period: Provided,
1 ring finger 5 finally, That the minimum death benefit shall not be less than fifteen
1 little finger 3 thousand pesos. (As amended by Section 4, Presidential Decree No.
1 big toe 6 1921).
Any toe 3
1 arm 50 (c) The monthly income benefit provided herein shall be the new amount
1 hand 39 of the monthly income benefit for the surviving beneficiaries upon the
1 foot 31 approval of this decree. (As amended by Section 8, Presidential Decree
1 leg 46 No. 1368).
1 ear 10
Both ears 20 (d) Funeral benefit. A funeral benefit of Three thousand pesos
Hearing in 1 ear 10 (P3,000.00) shall be paid upon the death of a covered employee or
Hearing in both ears 50 permanently totally disabled pensioner. (As amended by Section 3,
Sight of the 1 eye 25 Executive Order No. 179).
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- Thereafter, the beneficiaries shall be paid the monthly a. Surviving spouse
income benefit for as long as they are entitled thereto. b. Legitimate child who spent for the funeral expenses
c. Any other person who can show incontrovertible proof that
b. Secondary beneficiaries: he shouldered the funeral expenses
- Payable in monthly pension
- Shall not exceed the period of 60 months Beneficiaries are still entitled to the funeral benefits of a missing
- Shall not be less than 60k person
If one is declared presumptively dead after he had been reported Chapter VIII
missing for some time, payment of death benefits shall be PROVISIONS COMMON TO INCOME BENEFITS
reckoned form the date he was declared presumptively dead by
proper authority in accordance with law, except when the
ARTICLE. 195. Relationship and dependency. All questions of
declaration of death specifies another date, in which case,
relationship and dependency shall be determined as of the time of death.
payment of death benefits shall start from the latter date.
Laws Repealed
* The Labor Code provisions on employees
compensation repealed:
a. Act No. 1874 Employers Liability Act
b. Act No. 3428 Workmens Compensation
Act
TITLE III
MEDICARE
TITLE IV
ADULT EDUCATION
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Stems from the principle that an ER cannot be compelled
J. Prerogative to Close Down its Business to continue with the employment of a person guilty of
- GR: state should not interfere with the managements decision to close down its malfeasance or misfeasance towards his ER and whose
business continuance in the service is patently inimical to his
- right to close down the entire estab carries with it the right to close a part of thereof. interest.
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o Dismissed EE should be given a substantially equivalent position
Remedy for Illegal or unjust dismissal Otherwise, the EE is entitled to separation pay equivalent
o File a complaint for illegal dismissal with the LA (regl branch of the to at least 0ne month salary for every year of service plus
NLRC) backwages, if warranted.
Petition for injunction is not a proper remedy because (if ER has closed down its business, undertook
injunction is not a cause of action itself but merely a retrenchment measures or drastic reduction of
provisional remedy an adjunct to a main suit. ( originates personnel or considerable lapse of time has
from any labor dispute) lapsed since the EEs dismissal that
Reliefs for Unjust or Illegal Dismissal reinstatement is impractical)
o Migrant workers However, if the illegally dismissed EE has retired that
Full reimbursement f his placement fee with 12% interest relief of SP is not available, he will only be entitled to
per annum backwages up to the time when he reached the
Salaries for the unexpired portion of his employment retirement age plus, retirement pay.
contract, or 3 months salary for every year of the
unexpired term, whichever is less.
Propriety of Reinstatement
o Available only to EEs who are unjustly dismissed or illegally
o Locally employed workers dismissed.
Reinstatement without loss of seniority rights and other Not proper when the EE abandoned his employment or
privileges refuse to work
Backwages, inclusive of allowances, and to his other
benefits or their monetary equivalent computed from the
time his compensation was withheld from him up to the
time of his actual reinstatement Effect of Employment Elsewhere
Moral and exemplary damages, if the dismissal was o Still entitled to be reinstated
tainted with malice or bad faith or o Cannot be expected to remain idle particularly if he has dependents
Separation pay, under certain conditions looking to hi for his sustenance
o Employment elsewhere is out of necessity rather than choice
o Can apply in foreign country
o Reinstatement
Relief separate and distinct from backwages.
Restores the lost position Circumstances that Preclude Reinstatement
Backwages restores the lost income
Restoration to a state from which one has been removed GR: As long as the dismissal is illegal, the automatic relief is REINSTATEMENT,
or separated. It is the return to the position from which he except:
was removed.
An ER cannot be ordered to reinstate an EE to a position 1. Transfer of Business ownership
which he never occupied. a. Reason: New owner (buyer) is not obliged to absorb the EEs of the old
Reinstated EE may be required to undergo physical or owner (seller), unless there is an express assumption of liabilities by the
medical exam to determine his fitness to work but not use new owner
as a precon for reinstatement 2. ER suffers business reverses
Reinstatement Without Loss of Seniority Rights a. Reason: ER cannot be compelled by an order of reinstatement to give
o Means upon reinstatement, the EE is to be treated in matters employment to a greater number of persons than the economic
involving rank, position, and continuity of employment as though he operations of the business requires: ER is still liable for backwages
has not been absent from work. 3. When the position is abolished
4. Closure of Business
a. Reason: would amount to exacting from the ER compliance with the
Alternative relief If Reinstatement is No Longer Possible/already filled up impossible
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5. Incapacity of the EE o Amount of backwages that may be awarded
6. Attainment of retirement Age Art. 279 LC EE is entitled to FULL BACKWAGES from the time
a. Reason: can no longer work after reaching the retirement age of 60 YO his compensation was withheld up to the time of his actual
7. When reinstatement is barred in conviction in criminal order reinstatement.
a. Reason: subsequent conviction is a supervening event that rendered BUT the LA and the NLRC have the discretion to
unjust and inequitable the reinstatement of an EE determine how much backwages should be awarded
8. Laches taking into account the facts and circumstances of each
a. Reason: to allow the management to conduct its business and affairs, case
considering the dismissal and the possibility of the dismissed EE Dismissal is unjust or illegal because the EE was
resorting to court action to vindicate his right to continue employment dismissed:
9. By prescription must be filed within 4 years from the date of dismissal o On grounds specifically prohibited by law; (Art.
10. When the complaint merely prays for SP 118, 137, 248 (F), 290)
a. Reason: he forecloses his right to reinstatement o Without ANY cause whatsoever, i.e., the EE has
11. Strained relations not committed an offense, or
Applicable to reinstatement pending appeal o Without JUST cause, the EE has committed an
offense but the penalty of dismissal is not
When to invoked the doctrine of Strained relations commensurate.
o GR: must be raised and proved before the LA, except: o Full Backwages
Strained relations arose after the filing of the complaint If the EE was dismissed on grounds specifically prohibited by law;
During the execution proceedings as a supervening event which (Art. 118, 137, 248 (F), 290) ---(should not be dismissed in the 1st
would render the execution unjust and inequiatable place)
o Should not be applied indiscriminately If dismissed Without ANY cause whatsoever, i.e., the EE has not
committed an offense, ( EE does not deserve any penalty
considering that he has not committed any offense
Remedy for Refusal to comply with a reinstatement
o not a separate action for illegal dismissal but a motion for issuance of writ of o Limited Backwages
execution If the EE was dismissed Without JUST cause,i.e., the EE has
o if the ER still refused to comply with the reinstatement order despite the committed an offense but the penalty of dismissal was found to be
issuance of a writ of execution, the remedy is not the grant of additional too harsh or excessive, full backwages should not be awarded
backwages, but contempt proceedings because that would be in effect absolve the EE from his
o Christian Lit vs NLRC involves refusal to comply with a reinstatement order wrongdoing.
that has become final and executor, whereas in Medina case, involves refusal if there is delay in filing the complaint for illegal dismissal. The
to comply with a reinstatement order pending appeal period of delay in instituting the action for reinstatement may be
deducted from the liability for backwages
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themselves at the expense of their ER and also because of Benefits that are enjoyable only if approved by the ER,
the laws abhorrence for double compensation such as free trip passes.
Mercury Drug Doctrine (Mercury Drug vs CIR)
Discarded the 1st method Separation Pay (SP)
Backwages due to an illegally dismissed EE is fixed at a o Distinct from backwages, hence, can be awarded simultaneously
certain amount (usually 3-yrs where the case is not o SP is intended to provide the EE money during the period in which he will be
terminated sooner) without deduction or looking for another employment
qualification o Sort of an aid to an EE upon his separation from service so that he may
Realistic, reasonable and mutually beneficial to both something on which to fall back when he losses his means of livelihood
parties because it relieves the EE from submitting docs to o Amount designed to provide him with the wherewithal during the period that
prove his earnings. he is looking for employment
Bustamante doctrine (Bustamante vs NLRC) o PURPOSE: to alleviate the difficulties that confront a dismissed EE thrown into
Currently followed the streets to face the necessities of life
Backwages to be awarded to an illegally dismissed EE, o When proper:
should not, as a general rule, be diminished or reduced by Redundancy
the earnings, derived by him elsewhere during the period Installation of labor-saving devices
of his illegal dismissal Retrenchment
Reason: the EE, while litigating the matter of his dismissal, Closure of establishment not due to serious business losses.
must still earn a living to support himself and family, while Disease, or
full backwages have to be paid by the ER as part of the Lay-off/suspension of operations for more than six months
price or penalty he has to pay for illegally dismissing his NOTE: EE found to have been unjustly dismissed, under the ff
EE circumstances:
If reinstatement of the EE has been rendered impossible
by supervening events, such as closure of estab, sale
o Computation of backwages for irregular workers or transfer of business ownership, abolition of position,
Determine frst what these workers would have reasonably earned reduction of personnel or physical incapacity of the EE
had they not been dismissed, using as basis for that purpose the If the reinstatement of the EE is no longer feasible, as
wages actually earned by other irregular workers doing the same when the relationship between the ER and the EE has
kind of work who have not been dismissed. been severely strained, or when there is no substantially
equivalent position available.
NOTE: if the EE was dismissed for just and valid cause.?
o Circumstances that forestall the running of backwages GR: SP from work of an EE for a just cause DOES NOT
Death (EE can earn wages only when alive) entitle him to SP
Physical or mental incapacity EXCEPT: when the EE was validly dismissed for a cause,
Attainment of retirement age other that serious misconduct or offenses
Permanent closure of establishment reflecting on his moral character as a measure of
Temporary closure of establishment social justice
Confinement in prison NOTE: if the EE resigned from his employment, NOT entitled to
Re-employment of the dismissed EE SP, except when it is stipulated in the employment contract, CBA or
established ER practice or policy.
NOTE:if the EE retires from employment, NOT ENTITLED to SP
o Other benefits but RETIREMENT PAY
Transporation and emergency allowances
Vacation leave or service incentive leave, and Damages
13th month pay o Moral and exemplary damages prescribed by the Civil Code
Phrase other benefits does NOT include: o EE must proved that his dismissal was: (moral damages)
Facilities used only during official tour of duty and not for Tainted by bad faith or fraud
personal and private purpose Contrary to morals, good customs or public policy
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Social humiliation, wounded feelings, grave anxiety, o Seasonal employment
o Exemplary damages o Fixed-term employment
EEs dismissal was effected in a wanton, oppressive or malevolent (the activities performed by the above are usually necessarily or
manner desirable in the usual business or trade of the ER but the law does
not consider them a regular EE because the engagement of the EE
Reliefs when there is neither dismissal nor abandonment is only for a limited period.
o Reinstatement
o Not entitled to backwages/SP: each party must bear his own loss Project employment
o Job confined to a specific project or undertaking, the completion or
Liability of Corporate Officers termination of which has been determined at the time of the engagement of
o GR: corporate officers cannot be held personally liable or solidarily liable with the EE, regardless of the number of years that It would take time to finish
the corpo for backwages, damages or other money claims of EEs, even if they undertaking
were impleaded in the complaint. o specific project or undertaking contemplates:
o EXCEPT: An activity which is not commonly or habitually performed; or
If the corpo officer acted in bad faith; A type of work which is done on a daily basis but only for a specific
If the corporation is no longer existing and unable to satisfy the duration of time until completion.
judgment in favor of the EE, in which case, the officers should be o May refer to two distinguishable types of activities, to wit:
held liable for acting on behalf of the corporation. Project could refer to a particular job or undertaking that is within
o Solidarity liability imposed upon the highest and most ranking officer of the the regular or usual business of the ER, but which is distinct and
corporation separate and identifiable as such, from the other undertakings of
Must be shown that the officers of the corp deliberately or the company. This begins and ends at determined or determinable
maliciously designed to evade the financial obli of the corp to its times.
EEs or a showing that the officers indiscriminately stopped its Ex: job on a construction company
business to perpetrate an illegal act, as a vehicle for the evason of Particular job or undertaking that is not within the regular business
existing obli, in circumvention of statutes and to confuse legitimate of the ER. Such job must also be identifiably separate and distinct
issues. from the ordinary or regular business operations of the ER
Ex: 5-yr expansion program for NST (consist of several
Art. 280. Regular and Casual Employment component projects)
6 not a test of ER-EE relationship o Each of the component project constitututes a
distinct undertaking identifiable from the
classification of employment ordinary business and activity of NST
o regular employment o Length of service is not the controlling test of project Employment.
o non-regular employment o TEST: w/n the engagement of the EE has been fixed for a specific project or
o casual undertaking, the completion or termination of which has been determined at
the time of the engagement of the EE
regular or permanent Employment o The duration of employment is coterminous with the work to which the EE
o where the EE has been engaged to perfrom activities that are usually was assigned.
necessary and desirable in the usual business or trade of the ER o EEs affected cannot compel the ER to keep them in the payroll because it is
o determined not by the employment contract nor by the nomenclature of the unjust to require the ER to maintain them in the payroll while they are doing
job but by the NATURE of the job. absolutely nothing except waiting until another project is begun.
o TEST: reasonable connection between the particular activity performed by the o Otherwise, these Stand-by Workers would be enjoying the status of privileged
EE in relation to the usual business or trade of the ER retainers collecting payment for work not done, to be disbursed by the ER
o In some cases: repeated re-hiring and the continuing need for the EEs service from profits not earned.
may indicate that the activity is usually necessary or desirable in the usual
trade or business or trade of the ER Seasonal Employment
o Job that is limited to the duration of a particular season
Non-regular of Temporary Employment o Co-terminus with the duration of the season
o Project Employment
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o However, if the same EEs are repeatedly engaged every season, they become When a longer probationary period is established by company
regular seasonal EEs, in which case, they cannot be terminated without just policy; or
cause When a longer period is required by the nature of the work
o OFF-season: regular seasonal EEs is nt severed but merely suspended o NOTE: where the work for which the EE has been engaged is learnable
Fixed- Term Employment or apprenticeable in accordance with the standards prescribed by the
o EEs with specific date of termination DOLE, the period of probi employment shall be limited to the authorized
o Determining factor is not the activity that the EE is called upon to perfrm but learnership or apprenticehip period. Thus,upon graduation or upon
the day certain agreed upon by the parties completion of the learning period, an apprentice or learner may not be
o DAY CERTAIN that which necessarily must come, although it may not be put under probationary employment in the same company in which they
known when are trained. In another company, they may be plac on probi status of
o Employment contracts for a fixed period cannot be said to be in 6months.
circumvention of security of tenure: Duration of Probi employment for teachers
If the fixed period of employment was knowingly and voluntarily o Elem and secondary level 3 consecutive school years of satisfactory
agreed upon by the parties without any force, duress or improper service
pressure being bought to bear upon the EE and without any other o Tertiary and graduate level 6 consecutive semesters of satisfactory
circumstances vitiating consent, or service
If it is satisfactorily appears that the ER and EE dealth with each o Tertiary level on trimester basis 9 consecutive trimesters of satisfactory
other on more or less equal terms with no moral dominance service
whatever being exercised by the former on the latter.
Extension of probi employment
o Granted to give the EE the chance to improve
Casual employment o Should before the expiration of the prescribed period otherwise, the EE
o Job wherein the activities performed by the EE are not usually necessary or will automatically become a regular EE by operation of law.
desirable in the usual business or trade of the ER
o Casual occasional, coming with regularity. Also, when it is not part of the Termination of probi employment
business in which the ER is engaged. o any of the causes enumerated in Art. 282, 283, and 284 of the LC, or
o Casual EE who has rendered at least one (1) year of service, whether such o failure to qualify as a regular EE in accordance with reasonable standards
service is continous or broken, is considered a regular EE with respect to the made known by the ER at the time of his engagement
activity in which he is employed. o may be terminated even before the expiration of 6 months after hiring
o Regular status attached to the casual EE on the day immediately after the end
of the first year of service Limitations on the Right to Terminate a Probi Employment
o Art. 280 applies to EEs hired directly by an ER: Art. 106- those hired by the o Must be exercised in accordance with the specific requirements of the
contractor contract
o The dissatisfaction of the ER must be real and in GF, not feigned so as to
Art. 281. Probationary Employment circumvent the contract or the law, and
Situation where the EE upon his engagement is made to undergo a trial period o There must be no unlawful discrimination in the dismissal
during which the ER determines his fitness to qualify for regular employment,
based on reasonable standards made known to him at the time of engagement. Art. 282. Termination by the ER
The contract should specifically state that the management of the EE is on Serious Misconduct or willfull disobedience by the EE of the lawful orders of his
probationary basis, otherwise, the employment cannot be considered as ER or rep in connection with the work
probationary. Gross and habitual neglect by the EE of his duties
Purpose: to allow the ER to test the wrking habits and other personal traits of the Fraud or willfull breach by the EE of the trust reposed in him by his ER or duly
EE with respect to his fitness for regularization in the company. authorized representative
Duration: Commission of a crime or offense by the EE against the person of his ER or any
o GR: limited to 6 months immediate member of his family or his duly authorized rep and
o Exceptions: Other causes analogous to the foregoing.
When the parties to an employment contract or CBA agree on
a longer period; Serious misconduct
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o Misconduct improper or wrong conduct o Fraud is the knowing misrepresentation of the truth or
o Transgression of some estab and definite rule of acion, concealment of a material fact to induce another to act to his
forbidden act, a dereliction of duty, willful in character and or her detriment.
implies a wrongful intent and not a mere error of judgment o To constitute a just cause for dismissal, fraud must be:
Must be serious; and Committed against the ER; and
Use of insulting and offensive language will In connection with the EEs work
constitute serious misconduct if uttered NOTE: if 3rd person not fraud: no connection with
when the person subjected to it is present, his work
otherwise, not.
When an EE made false and malicious Willfull breach of trust
statements against their superiors o if done intentionally, knowingly and purposely without
Related to or in connection with the EEs work justifiable excuse, as distinguished from an act done
Harassment of an EE by a co-EE within the carelessly, thoughtlessly, heedlessly or inadvertently
company premises Valid ground:
Willfull Disobedience Willful, and
o Requisites Related to the performance of the EEs
The disobedience must be willfull or intentional functions
Order must be reasonable and lawful Basic Premise: the EE concerned holds a position of
Order must be known to the EE; and trust and confidence and it is breach of this trust that
Order must pertain to or must be in connection with results in the ERs loss of confidence in the EE
the duties which the EE had been engaged to o Guidelines for the Application of the doctrine of Loss of
discharge confidence:
Loss of confidence should not be simulated
The disobedience must be willfull or intentional Should not be used as a subterfure for causes which
o Characterized by a wrongful and perverse mental attitude are improper, illegal or unjustified
rendering the EEs act inconsistent with proper subordination May not be arbitratrily asserted in the face of
Order must be reasonable and lawful overwhelming evidence to the contrary and
Pertains tp the kind or character of directives and commands and to the Must be genuine, not a mere afterthought to justify
manner in which they are made the earlier action taken in bad faith
Lawful if not contrary to law, morals, good customs, public policy or o Positions of T/C
public order Bank teller
Example: Cashier
o Refusal to obey a transfer order Salesman
Miner
Gross and habitual neglect of Duty Teachers
o Gross: glaringly noticeable usually because of inexcusable GM
badness or objectionableness. VP for Marketing
o Habitual: connotes more than just a single or isolated act. Dist. Sales Sup
o Reason: reciprocal obligations entailed in an ER-EE Credit and Collection Sup
relationship Warehouseman
o Neglect: not the same as negligence
Neglect= indicates as a purely objective fact that a Commission of the crime
person has not done that which it was his duty to do o Ground for dismissal if commited by an EE against the person
it does not indicate the reason for his failure of the:
Negligence = subjective state of mind ER
Damage: not essential: enough to prejudice the ER Immediate member of his family
Authorized representative of the ER
Fraud
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o Prior conviction is not required mere commission of the demands, requests or otherwise any sexual
crime is enough favor from another, regardless whether the
demand, request or requirement is accepted.
Analogous causes
o Must have an element similar to those found in the specific Art. 283. Closure of Establishment and regulation of Personnel
just cause enumerated under Art. 282 of the LC
o Voluntary or willful act of the EE Economic justifications for terminating employment
o Not included o Installation of labor-saving devices
Illness o Redundancy
Conviction of a crime involving moral turpitude o Retrenchment to prevent the losses
o Examples: o Closing or cessation of operation of the establishment
Gross inefficiency Not attributable to the fault of the EE but due to the prerogative of every business
Closely related to gross neglect concern to institute appropriate measures to ensure increased productivity,
Inflicting or attempting to inflict bodily injury on the economic viability and competetiveness
job site on company time Due to economic reasons
Unreasonable behavior, quarrelsome, bossy and very
difficult to deal with 1. Installation of labor-saving devices
ERs right to effect more economy and efficiency in its method of production
Other Valid Causes for Dismissal Purpose: to mechanize or modernize its business even if in the process, It results in
1. Violation of company rules and regulations the dismissal of a number of EEs
2. Breach of union secu arrangements;
a. Limitations: 2. Redundancy
i. EEs who are already members of another Exist when the services of an EE are in excess of what is reasonably demanded by
union at the time of the signing of the CBA the actual requirements of the enterprise
cannot be dismissed for refusing to join the Exercise of business judgment
contracting union Does not necessarily refer to the duplication of work
ii. EEs who refuse to join the contracting union Principle: an ER cannot be compelled to give employment to a greater number of
because of prohibition imposed by their persons than the economic operations of his business requires.
religion cannot likewise be dismissed; Requisites:
iii. If its was the contracting union itself who o GF in abolishing the redundant positions
refused to accept the EE as its member, the o Fair and reasonable criteria in ascertaining what positions are to be
union cannot validly ask for the dismissal of declared redundant and accordingly abolished.
the EE o Written notice served on both the EEs and the DOLE at least 1 month
iv. If the EE resigns from the contracting union prior to the intended date of termination; and
during the freedom period, the union cannot o Payment of SP
validly ask for the dismissal of an EE
3. Retrenchment
3. Participation in an illegal strike Is the reduction of personnel due to actual or anticipated losses, lack of work or
a. Any union officer who knowingly participates in reduction in the volume of business
an illegal strike may be declared to have lost Can be adopted even before the actual losses is sustained
their employment status Four standards
4. Commission of illegal acts during a strike o Expected losses should be substantial and not merely deminimis in
a. Union officer or worker extent
5. Defiance of return-to-work order in a strike; and o Substantial loss apprehended must be reasonably imminent, as such
6. Sexual harassment immenence can be perceived objectively and in good faith by the ER
a. Committed by an ER, EE, Manager, Supervisor o Must be reasonably necessary and likely to effectively prevent the
or agent of the ER who, having authority, expected losses. It must be resorted to as a measure of last resort
influence or moral ascendancy over another,
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o Alleged losses realizes and the expected imminent losses sought to be Conditions for terminating an employment due to illness
forestalled, must be proved by sufficient and convincing evidence o That the continued employment of the sick EE is prohibited by law or is
prejudicial to his health or to the health of his co-EEs and
Requisites for valid retrenchment o That there is a certification from a competent public authority that the
o It is reasonably necessary and likely to prevent business losses which, if diseaseis of such nature or at such a stage that is cannot be cured withn
already incurred, and not merely de minimis but substantial, serious, the period of 6 months even with proper medical treatement
actual and real or if onlu expected, are reasonably imminent as perceived Medical cert required
objectively and in GF by the ER. If can be cured within 6-months, the EE shouls be allowed to take a leave
o That the ER exercises its prerogative to retrench EEs in GF for the Otherwise, the EE is entitled to a SP equivalent to at least 1month salary or
advancement of its interest and not to defeat or circumvent the EEs right month for every year of service. Whichever is greater.
to security of tenure;
o That the ER used fair and reasonable criteria in ascertaining who would Art. 285. Termination by EE
be dismissed and who would be retained among the EEs Termination of Employment by an EE
o That the ER served written notice both to the EE and the DOLE at least 1 1. Voluntary resignation
month prior to the intended date of retrenchment 2. Constructive resignation (abandonment of employment)
o That the ER pays the retrenched EEs separation pay. 3. involuntary resignation (constructive dismissal
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If the ER accepts said withdrawal the EE retains his job o One month notice NOT required if the EE decides to quit his job for
If the ER does not the EE cannot claim illegal dismissal for the ER has the right to any causes in Art. 285
determine who his EEs will be. o Relief: SP plus indemnity in the form of nominal damages or backwages,
Employment contract is consensual and voluntary the amount of which will depend upon the discretion of the LA or the
NOT entitled to SP, except when it is stipulated in the employment contract, CBA NLRC
or if sanctioned by established ER practice or policy Reinstatement not proper relief because of the strained
relations between the parties
2. constructive resignation (abandonment of employment)
Deliberate, unjustified refusal of an EE to resume his work Art. 286. When employment not deemed Terminated
Voluntary act of the EE akin to voluntary resignation, but here, the EE quits his 1. bonafide suspension of the operation of a business or undertaking for a period NOT
employment without notice exceeding 6 months
Elements Management prerogative as no business can be required to continue operating at
o Absence without notice, permission or justifiable reason a loss simply to maintin the workers in employment
o Intent to sever the employment relationship Must be done in GF and due to causes beyond control
Intent to abandon can be inferred from the ff: ER-EE relationship merely suspended.
o Failure of the EE to comply with notices or directives for him to report Once the operations resumed, the EE-ER relationship is restored and the ER is
for work bound to reinstate the EE to his former position without loss of seniority rights If
o Failure to report for work within reasonable time after expiration of leave he indicates his desire to resume his work not later than 1-month from the
of absence without pay resumption of operations.
o Failure to report for work despite disapproval of application for If exceeds 6-months constructive dismissal: EE entitled to SP, unless the failure to
indefinite leave of absence resume operations was impelled by serious business losses, in which case, the EEs
o Prolonged absences without justifiable reason are not entitled to SP
Negated by the immediate filing of a complaint for illegal dismissal. Except when o Temporary lay-off detail/floating status
the EE does not pray for reinstatement but only for SP Waiting to be posted
Abandonment vs absence without Leave (AWOL) Should not exceed 6months
o Abandonment no intention to return to work
o Absence without leave there is an intention to return to work 2. The fulfillment by an EE of a military or civic duty
Issue w/n an EE abandoned his employment is q question of fact Suspends the employment even if it exceeds 6months
o Burden of proof is on the ER Reason: State orders a citizen to render military or civic duty, there is no choice
except to comply
3. involuntary resignation (constructive dismissal) EE must signify his desire to resume his work not later than one-month from his
Situation where an EE is contrained to quit his job because continued employment relief from the military or civic duty
is rendered impossible, unreasonable or unlikely;
There is demotion in rank, diminution in pay or when there is a clear discrimination, Retirement from the service
insensibility or disdain by an ER becomes unbearable to the EE Retirement -
Art. 285 LC forms of constructive dismissal because the resignation was
involuntary
o Serious insult upon the honor and person of the EE
Exemplified by an EE who quits his employment after being
demoted without just cause
o Inhuman and unbearable treatment
Exemplified by an EE who quits his employment because of a
legitimate desire for self-preservation
o Commission of a crime
Exemplified by ER who commits the crime of rape, PI,
mutilation, abortion, infanticide, homicide, murder, parricide,
discharge of firearms or challenging to duel, against the EE or
the immediate member of his family
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